Square Enix has released its financial report (thanks Automaton-Media) for the first nine months of the fiscal year, which will end on March 31, 2025. The company reported a decline in operating profits, despite the strong sales of Final Fantasy XIV: Dawntrail and Dragon Quest III HD-2D Remake.
In the Digital Entertainment (video games) sector, Square Enix saw a 10.7% drop in net sales, totaling 160,386 million yen, while operating income fell by 9.9%, reaching 27,689 million yen. This decline was mainly due to the underperformance of mobile and browser-based games and the fact that new releases failed to match the sales of Final Fantasy XVI, Final Fantasy Pixel Remaster, and Dragon Quest Monsters: The Dark Prince from the previous year.
However, Square Enix was able to maintain its position thanks to the better-than-expected performance of the Dragon Quest III HD-2D Remake, released in November 2024. Profits from the MMO segment also increased due to Final Fantasy XIV: Dawntrail. Net sales for the MMO segment grew by more than 9 billion yen, reaching 44 billion yen, while operating income increased by 2.9 billion yen, totaling 17.3 billion yen.
The Publishing sector remained stable but saw a decline in profits, largely due to preparations for new releases and a drop in sales of Il monologo della speziale, linked to the mangaka being involved in a tax evasion scandal in April 2024, which caused interest in his works to fall.
Square Enix’s Merchandising division saw increased sales and profits, driven by the strong performance of new products related to popular series like Final Fantasy, Dragon Quest, and NieR.
Square Enix Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2025:
- Net sales: 248,519 million yen (down 3.5% from the previous year)
- Operating profit: 33,381 million yen (down 4.4% from the previous year)
- Recurring profit: 37,759 million yen (down 7.7% from the previous year)
- Net income: 24,718 million yen (down 7.7% from the previous year)
Forecast for the Full Year:
- Net sales: 310 million yen (down 13.0% year-on-year)
- Operating profit: 40 million yen (up 22.9% year-on-year)
- Recurring profit: 40 million yen (down 3.7% year-on-year)
- Net income: 28 million yen (up 87.8% year-on-year)
