Square Enix has released their Consolidated Financial Results for the nine-month period of April 1, 2023 to December 31, 2023 of the 2024 financial year. As seen in their previous 1st quarter and half year reports, Square Enix has continued to see an increase in sales but a decline in profits due to an increase in development and advertisement costs. [Thanks, gamebiz!]
The report states that Square Enix is continuing to make efforts to "strengthen the competitiveness and profitability" of the various arms of the company including Digital Entertainment, Amusement, Publication, and Merchandising. The company reported ¥257,612 million in net sales during the nine-month period ending December 31, 2023. This is an increase of 0.8% from the company's prior fiscal year during the same period of time. Square Enix also reported a 15.5% decrease in its operating income which totaled ¥34,918 million.
Square Enix's Digital Entertainment segment reported an increase in sales over the previous fiscal year during the same nine-month period due to the release of Final Fantasy XVI, Final Fantasy Pixel Remaster, and Dragon Quest Monsters: The Dark Prince. The MMO segment saw a decrease in net sales compared to last year. Games for Smart Devices/PC Browser saw a decrease in net sales as new games like Final Fantasy VII Ever Crisis and Dragon Quest Champions were unable to compensate for the decrease in performance for existing titles. Overall, the Digital Entertainment segment of Square Enix totaled ¥179,654 million in net sales, which is a 2.6% decrease from the prior fiscal year. The Digital Entertainment segment had an operating income of ¥30,715 million, which is a 20.7% decrease from the prior fiscal year.
The Amusement, Publication, and Merchandising segments of Square Enix all saw an increase in net sales and operating income during the nine-month period. Amusement totaled ¥44,858 million in net sales, which is an increase of 9.7% from last year, and ¥5,488 million in operating income, marking a 33.8% increase from last year. Publication saw a net sales increase of ¥22,745 million, which is a 7.9% increase from the last fiscal year, and ¥8,929 million in operating income which is a 6.8% from last year. Square Enix attributes this increase to the growth of print and digital sales of their comic books, and also due to the success of the anime adaption of The Apothecary Diaries. Merchandising saw a net sales increase of 4.4%, which totaled ¥12,429 million. The Merchandising segment also had an increase of 10.7% for its operating income totaling ¥3,210 million. This is in part due to a rise in sales of new merchandise from popular key franchises from Square Enix.
Square Enix has multiple mobile launches planned for the future, and also highlighted their upcoming releases including Foamstars, Final Fantasy VII Rebirth, Final Fantasy XIV: Dawntrail, and the new expansion for Dragon Quest X.
The post Square Enix 2023 Financial Results Show Continued Sales Increase, Profit Decline appeared first on Siliconera.