Notice of Revisions of Consolidated Financial Forecasts and Year-end Dividend

Rhea-AI Summary

SQUARE ENIX HOLDINGS CO., LTD. has revised its consolidated financial forecasts for the fiscal year ending March 31, 2021. The new forecasts project net sales of ¥332.5 billion, an increase of 14.7% from previous estimates, and operating income of ¥47.2 billion, up 18%. The revised profit attributable to owners is now ¥26.9 billion, a 12.1% increase. Additionally, the company announced a projected year-end dividend of ¥68 per share, up from ¥61, reflecting a commitment to shareholder returns and a payout ratio target of about 30%.

Positive

• Projected net sales increased to ¥332.5 billion, reflecting a 14.7% rise.
• Operating income revised upward to ¥47.2 billion, a growth of 18%.
• Projected year-end dividend increased to ¥68 per share, up from ¥61.

Negative

• None.

TOKYO, May 11, 2021 /PRNewswire/ -- SQUARE ENIX HOLDINGS CO., LTD. (the "Company") had released consolidated financial forecasts and a projected year-end dividend for the fiscal year through March 31, 2021 (April 1, 2020 - March 31, 2021) on November 6, 2020, but now announces the following revisions made to reflect recent earnings trends.

1.  Revisions to Consolidated Financial Forecasts for the Fiscal Year through March 31, 2021
(April 1, 2020 through March 31, 2021)      

(Millions of yen, percentage change, and per share data)
		Net sales	Operating Income	Ordinary Income	Profit attributable to owners of parent	Earnings per share
Previous forecasts	(A)	290,000	40,000	40,000	24,000	201.14
Revised forecasts	(B)	332,500	47,200	49,900	26,900	225.75
Change	(B-A)	42,500	7,200	9,900	2,900
Percentage change	(%)	14.7%	18.0%	24.8%	12.1%
[Reference] Results for the fiscal year ended March 31, 2020		260,527	32,759	32,095	21,346	179.02

2.  Reasons for the Revisions
The Company now expects higher net sales, operating income, ordinary income, and profit attributable to owners of parent than previously anticipated under its consolidated financial forecasts for the fiscal year through March 31, 2021. Among the factors contributing to these revisions is a solid performance by the Digital Entertainment segment as a whole, as well as brisk sales of both printed and digital media in the Publication segment.

*The above forecasts are based on information available at the time of this document's release and are subject to various uncertainties. As such, actual performance may differ from these forecasts.

3．Revision of Projected Dividend Per Share for the Fiscal Year through March 31, 2021

	Interim	Year-end	Annual
Previous Forecasts	－	￥51.00	￥61.00
Revised Forecasts	－	￥58.00	￥68.00
Actual Results for the current FY	￥10.00	－	－
Actual Results for the previous FY (FY2020/3)	￥10.00	￥44.00	￥54.00

4.  Reasons for the Revision
The Company recognizes the return of profits to shareholders as one of its most important management tasks and has set a consolidated payout ratio target of approximately 30% to guide its shareholder return policy for the fiscal year through March 31, 2021.

Given the aforementioned revisions to its consolidated financial forecasts, the Company revises its projected year-end dividend for the fiscal year to 58 yen per share, which would make for an annual dividend per share of 68 yen.   

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SOURCE SQUARE ENIX HOLDINGS CO., LTD.

FAQ

What are the revised financial forecasts for SQUARE ENIX for FY 2021?

SQUARE ENIX revised its financial forecasts to project net sales of ¥332.5 billion, operating income of ¥47.2 billion, and profit attributable to owners at ¥26.9 billion for FY 2021.

What is the new year-end dividend for SQUARE ENIX for the fiscal year 2021?

The company revised its projected year-end dividend to ¥68 per share for the fiscal year ending March 31, 2021.

How much did SQUARE ENIX revise its net sales forecast?

The net sales forecast was increased by ¥42.5 billion, from ¥290 billion to ¥332.5 billion.

What is the payout ratio target for SQUARE ENIX?

SQUARE ENIX aims for a consolidated payout ratio target of approximately 30% for the fiscal year through March 31, 2021.