Square Enix Holdings Co., Ltd. Announces Financial Results for the Nine-month Period Ended December 31, 2021

Rhea-AI Summary

Square Enix Holdings reported consolidated results for the nine-month period ended December 31, 2021, showing net sales of 273,627 million yen, a 7.9% increase year-over-year. Operating income rose by 22.2% to 50,138 million yen, while ordinary income increased by 40.7% to 54,441 million yen. Profit attributable to owners surged 116.9% to 39,844 million yen, with EPS reaching 333.44 yen. The company forecasts full-year net sales of 340,000 million yen, a 2.2% increase compared to the prior year.

Positive

• Net sales increased by 7.9% to 273,627 million yen.
• Operating income up by 22.2% to 50,138 million yen.
• Ordinary income rose by 40.7% to 54,441 million yen.
• Profit attributable to owners increased 116.9% to 39,844 million yen.
• EPS of 333.44 yen, significantly up from 153.96 yen.

Negative

• Net sales in the HD Game sub-segment declined compared to the previous year.

TOKYO--(BUSINESS WIRE)-- SQUARE ENIX HOLDINGS CO., LTD. (the “Company”) today announced consolidated results for the nine-month period ended December 31, 2021 (the “Period”). The Company is listed on the First Section of the Tokyo Stock Exchange, with the stock code “9684,” and prepares its financial statements according to the Japan GAAP.

Key Figures
				(millions of yen, except percentages and per share data)
9 months actual		9 mos. ended 12/21		9 mos. ended 12/20		YoY change
Net sales		273,627		253,643		7.9	%
Operating income		50,138		41,022		22.2	%
Ordinary income		54,441		38,703		40.7	%
Profit attributable to owners of parent		39,844		18,371		116.9	%
EPS, basic		333.44 yen		153.96 yen		－
Full year		Forecast FY ending 3/22		Actual FY ended 3/21		YoY change
Net sales		340,000		332,532		2.2	%
Operating income		50,000		47,226		5.9	%
Ordinary income		50,000		49,983		0.0	%
Profit attributable to owners of parent		35,000		26,942		29.9	%
EPS, basic		292.90 yen		225.75 yen		－
Yes change in consolidated forecasts from the previous announcement.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and other standards as of the start of the first quarter of the consolidated fiscal year ending March 31, 2022 and figures for the year ending March 31, 2022 reflect this change of accounting method.
For additional information, please refer to the full-length Consolidated Financial Results document at: https://www.hd.square-enix.com/eng/22q3earnings.pdf, or the Company’s IR website: https://www.hd.square-enix.com/eng/ir/.

In the Digital Entertainment segment, the HD (High-Definition) Game sub-segment, the nine-month period ended December 31, 2021 saw the release of such titles as “OUTRIDERS,” “NieR Replicant ver.1.22474487139...,” and “Marvel’s Guardians of the Galaxy.” However, the sub-segment’s net sales declined compared to the same period of the previous fiscal year, which had seen the release of such titles as “FINAL FANTASY VII REMAKE” and “Marvel's Avengers.”

In the MMO (Massively Multiplayer Online) Game sub-segment, sales rose compared to the same period of the previous fiscal year, due not only to a sharp rise in the number of monthly paying subscribers for “FINAL FANTASY XIV,” but also to the release of an expansion pack for the title.

The Games for Smart Devices/PC Browser sub-segment saw somewhat weak performances from existing titles, but its net sales rose compared to the same period of the previous fiscal year due to the application of revised revenue recognition standards.

In the Amusement segment, compared to the same period of the previous fiscal year, the nine-month period ended December 31, 2021 saw net sales rise and a turn to profit at the operating line because the segment had sustained significant impact the previous year from the temporary closure of amusement facilities in Japan, a move undertaken to combat the spread of COVID-19 in response to the Japanese government’s declaration of a state of emergency.

In the Publication segment, sales of e-books and other digital media rose in the nine-month period ended December 31, 2021. Sales of printed media were also solid, resulting in higher net sales and operating income than in the same period of the previous fiscal year.

In the Merchandising segment, brisk sales of new character merchandise based on the Group’s own content during the nine-month period ended December 31, 2021 resulted in higher net sales and operating income than in the same period of the previous fiscal year.

About Square Enix Holdings Co., Ltd.

Square Enix Holdings Co., Ltd. with headquarters in Tokyo, Japan, is the holding company leading the group of Square Enix companies (the "Square Enix Group") with a diverse range of content and service businesses. The Square Enix Group publishes, distributes and licenses entertainment content around the world under its internationally renowned brands including SQUARE ENIX®, EIDOS® and TAITO®. The Square Enix Group includes a global network of leading development studios located in North America, Europe and Japan. The Square Enix Group also boasts a valuable portfolio of intellectual property including: FINAL FANTASY®, which has sold over 164 million units worldwide; DRAGON QUEST®, which has sold over 83 million units worldwide; TOMB RAIDER®, which has sold over 85 million units worldwide; and the legendary SPACE INVADERS®.

More information on Square Enix Holdings Co., Ltd. can be found at http://www.hd.square-enix.com/eng/

*Unit sales are the total number of cumulative package shipment and digital sales. Digital sales are the cumulative unit number in and after April 2015, and include full-game downloads of packaged games and download-only games for console and PC.

Disclaimer

The forward-looking statements in this document are based upon the information currently available, and necessarily include elements that are not entirely predictable. Actual results may differ from the forward-looking statements in this document.

DRAGON QUEST, EIDOS, FINAL FANTASY, SPACE INVADERS, SQUARE ENIX, the SQUARE ENIX logo, TAITO and TOMB RAIDER are registered trademarks or trademarks of the Square Enix Group. All other trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220204005122/en/

Kiyono MARIKO - Corporate Communications, SQUARE ENIX

PR-HD@square-enix.com

Source: Square Enix Holdings Co., Ltd.

FAQ

What are Square Enix's recent earnings results for SQNNY?

For the nine months ending December 31, 2021, Square Enix reported net sales of 273,627 million yen, up 7.9%, with operating income of 50,138 million yen.

What is the profit attributable to owners of Square Enix for SQNNY?

Profit attributable to owners of Square Enix increased to 39,844 million yen for the nine-month period ending December 31, 2021.

What is the EPS for Square Enix reported in the latest earnings for SQNNY?

The earnings per share (EPS) for Square Enix was reported at 333.44 yen for the nine-month period ending December 31, 2021.

What is the full-year net sales forecast for Square Enix for SQNNY?

Square Enix forecasts full-year net sales of 340,000 million yen, representing a 2.2% increase year-over-year.