Today Square Enix released its financial results for its fiscal year ended on March 31st, 2018.
The first table below showcases the appropriate revenue and income amounts that are all in the black. While sales were slightly lower, income shows significant growth.
The second table demonstrates that the publisher’s income exceeded predictions. This is a result of high-margin download revenue of older console names (NieR: Automata is unsurprisingly mentioned by title to this), that performed “strongly. ” in addition to that, another variable is earnings in the operation and growth disc sales of MMORPGs such as Final Fantasy XIV and Dragon Quest X.
We also get a handy explanation of the motives behind the results mentioned above. We hear that digital sales of games in the prior fiscal years such as NieR: Automata saved the day.
“The Digital Entertainment segment is composed of preparation, development, supply, and operation of digital entertainment content mainly in the form of game. Digital Entertainment content can be acquired to match customer lifestyles across a variety of usage environments such as user game consoles (including handheld game machines), personal computers and intelligent devices.
On the other hand, powerful high-margin download sales of previously published catalog titles such as “NieR: Automata” have led to an increase of operating income, in comparison with the previous fiscal year.
Apparently, the growth in operating income for its video game business of the publication is even higher (30.4%) than the growth registered by the entire company.
“Net sales and operating income in the Digital Entertainment department totaled ¥191,469 million (a decrease of 3.8% in the previous fiscal year), and ¥43,421 million (an increase of 30.4 percent in the prior fiscal year), respectively. ”
Last, but not least, we get the outlook for the present fiscal year.
The business environment surrounding the Group is in the middle of significant alterations, where consumer needs for information appropriate to smart devices like tablet computers and tablet PCs are rapidly expanding, whereas the console game markets from North America and Europe are progressively getting competitive and oligopolistic. The Group is focusing all efforts to reach sustainable increase coupled with profits on a good sales base during the introduction of adaptive content development adapting to the ever-changing environment as well as diversification of gain opportunities.
The market predicts sensibly higher general earnings and more significant increase in income. While this isn’t specifically said, it might be viewed as a level of assurance from the launching of forthcoming games like Kingdom Hearts III and Shadow of this Tomb Raider, that are scheduled to launch before the end of the financial year.