Square Enix Holdings Co., Ltd. Announces Financial Results for the Six-month Period Ended September 30, 2021

Rhea-AI Summary

Square Enix Holdings reported its consolidated results for the six-month period ending September 30, 2021. Net sales reached 168,917 million yen, a decrease of 2.2% year-over-year. Operating income also declined by 7.9% to 29,146 million yen. However, profit attributable to owners increased significantly by 43.3% to 22,991 million yen, and EPS improved to 192.48 yen from 134.49 yen. The company forecasts 340,000 million yen in net sales for the full year, reflecting a 2.2% increase year-over-year.

Positive

• Profit attributable to owners increased by 43.3% to 22,991 million yen.
• EPS rose to 192.48 yen, up from 134.49 yen.
• Digital Entertainment and Merchandising segments reported higher net sales.
• Full-year net sales forecasted at 340,000 million yen, a 2.2% rise.

Negative

• Net sales decreased by 2.2% compared to the previous year.
• Operating income declined by 7.9% to 29,146 million yen.
• MMO game segment faced growing competition, impacting net sales.

TOKYO--(BUSINESS WIRE)-- SQUARE ENIX HOLDINGS CO., LTD. (the “Company”) today announced consolidated results for the six-month period ended September 30, 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)
6 months actual	6 mos. ended 9/21	6 mos. ended 9/20	YoY change
Net sales	168,917	172,731	-2.2%
Operating income	29,146	31,655	-7.9%
Ordinary income	31,483	30,537	3.1%
Profit attributable to owners of parent	22,991	16,047	43.3%
EPS, basic	192.48 yen	134.49 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	40,000	47,226	-15.3%
Ordinary income	40,000	49,983	-20.0%
Profit attributable to owners of parent	24,000	26,942	-10.9%
EPS, basic	201.10 yen	225.75 yen	-
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/22q2earnings.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 six-month period ended September 30, 2021 saw the release of such titles as “Outriders,” “NieR Replicant ver.1.22474487139...,” “NEO: The World Ends with You,” and “Life is Strange: True Colors.” However, the sub-segment’s net sales declined compared to the same period of the previous fiscal year, which had seen the release of “FINAL FANTASY VII REMAKE” and “Marvel’s Avengers.”

In the MMO (Massively Multiplayer Online) Game sub-segment, net sales rose compared to the same period of the previous fiscal year due to sharp growth in the number of monthly paying subscribers for “FINAL FANTASY XIV.”

The Games for Smart Devices/PC Browser sub-segment saw net sales decline compared to the same period of the previous fiscal year, in part due to lackluster performances by existing titles.

In The Amusement segment, compared to the same period of the previous fiscal year, the six-month period ended September 30, 2021 saw a substantial rise in net sales and a turn to profit at the operating line because the segment had sustained significant impact in 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 six-month period ended September 30, 2021. Sales of printed media were also brisk, 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 six-month period ended September 30, 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 https://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/20211105005396/en/

Kiyono MARIKO

Corporate Communications, SQUARE ENIX

PR-HD@square-enix.com

Source: Square Enix Holdings Co., Ltd.

FAQ

What are Square Enix Holdings' earnings results for September 30, 2021?

Square Enix reported net sales of 168,917 million yen, operating income of 29,146 million yen, and profit attributable to owners of 22,991 million yen.

What is Square Enix's future outlook for FY ending March 2022?

The company forecasts net sales of 340,000 million yen and operating income of 40,000 million yen for the full year.

How did Square Enix's net sales change year-over-year?

Net sales decreased by 2.2% compared to the same six-month period last year.

What is the EPS reported by Square Enix for the six months ended September 30, 2021?

Square Enix reported an EPS of 192.48 yen for the six months ended September 30, 2021.