Square Enix’s Profit Grew as of Fiscal Year Ended March 31 2020, But Impact of the Novel Coronavirus Outbreak May Dampen Financial Earnings in 2021

Square Enix Holdings has registered a positive growth as profit went up 9% from ¥19 billion (~$177 million) for the fiscal year ending March 31, 2019 to ¥21 billion (~$196 million) for the fiscal year ending March 31, 2020 according to its latest Financial Report available here (page 13).

Final Fantasy XIV (1)

Final Fantasy XIV Shadow Bringer, released on July 19, 2019 (Picture source: https://na.finalfantasyxiv.com/shadowbringers/)

The rise in profit is attributable to the growth of subscriber count for the massively multiplayer online role-playing games (MMORPG), Final Fantasy XIV among others leading to higher net sales and operating income than the previous fiscal year. Likewise, it has also seen strong performance from its smart device and PC browser segment with “Romancing SaGa Re;univerSe” and “DRAGON QUEST WALK” leading the area. Its publication and merchandising departments also saw an increase in net sales and operating income.

Final Fantasy VII Remake (1)

Final Fantasy VII Remake was first announced to be released on March 20th, but it was later pushed back to April 10th (Picture source: https://www.playstation.com/en-us/games/final-fantasy-vii-remake-ps4/)

Unfortunately, it has seen net sales declined year-on-year (y-o-y) basis for console titles as it released fewer titles for the fiscal year, apart from that, the delay of “FINAL FANTASY VII REMAKE” to April the 10th did not help boost sales for this segment. However, sales from early shipments of “FINAL FANTASY VII REMAKE” in March was taken into account for the fiscal year. Please note that, its console titles, mobile and PC browser along with its MMORPG segments are within the scope of its Digital Entertainment segment. Other than that, Square Enix has also noted that, net sales and operating income of its Amusement sector fell 1.2% y-o-y.

Despite the positive posting, Square Enix has cautioned that the impact of the novel coronavirus outbreak may adversely affect its financial earnings the next fiscal year due to the slowdown of global economy as well as disruptions to distribution of packaged products and potential losses of its Amusement business.

Square Enix is headquartered in Shinjuku, Tokyo and is listed on the Tokyo Stock Exchange, ticker symbol 96840.

Note: The information above can all be found from page 2 – 4 of the Financial Report.

Source: Investor Relations
Follow Erzat on WordPress.com

Leave a Reply