Square Enix Quarterly Losses Drop by 75% to ¥493m - News
by William D'Angelo , posted on 06 August 2013 / 4,839 Views
Square Enix has released its quarterly report for the quarter ending June 30, 2013. Revenue decreased by 3.3 percent to ¥24.08 billion, from ¥24.94 billion during the same quarter a year ago. Despite the lack of new releases losses dropped by a massive 75 percent. Square Enix lost ¥2.08 billion a year ago, while it lost ¥0.49 billion this year.
The Digital Entertainment segment revenue increased 2.1 percent to ¥11.58 billion during the quarter. The division posted a profit of ¥1.32 billion, up from a loss of ¥111 million a year ago.
Square Enix noted that console game sales were poor due to the lack of new releases, however browser and smartphone game sales continued to grow. The browser game Sengoku IXA sales have remained steady and Kaku-San-Sei Million Arthur was a hit in Taiwan and Korea. The MMORPG Dragon Quest X saw digital sales remain steady.
The Amusement segment, which includes arcade game machines saw revenue drop 2.6 percent to ¥9.72 billion. Profits for the segment were ¥859 million, compared to a loss of ¥50 million a year ago.
The Publication segment, which includes comic books and strategy books, posted revenue of ¥2.16 billion, a drop of 28.2 percent. Profits dropped 35.8 percent to ¥474 million. The Merchandising segment revenue increased 6.3 percent to ¥623 million. Profits increased 2.3 percent to ¥83 million.
Square Enix also reported a booking of an extraordinary loss. The publisher due to the changing game industry did a review of its games currently in development. It booked a loss of ¥1.6 billion as an extraordinary.
For the full fiscal year which ends March 31, 2014, Square Enix hasn't changed its forecast despite the extraordinary loss. Revenue is expected to reach between ¥140 billion and ¥150 billion. This would be between a drop of 5.4 percent to an increase of 1.4 percent year-over-year.
Operating income for the full fiscal year is expected to reach between ¥5 billion and ¥9 billion. While net income is expected to be between ¥3.5 billion and ¥6 billion.
