Square Enix suffers declining revenue and profits
Yoichi Wada attributes poor financial results to lack of major releases
Square Enix's financial results for the quarter ending June 30 show a significant drop in revenue and profits.
The company posted overall revenue of ¥24,529 million ($312.4m), down from ¥32,540 million in the same quarterin 2010, and net profit of ¥690 million ($87.7m), a 61.9 percent drop from last year's figure of ¥1,575 million.
In the digital division, which inlcudes the group's game business, revenue was down 29.1 per cent year-on-year to ¥11,793 million ($150.2m). Operating income declined by 51.9 percent to ¥2,834 million ($36.1m).
"In a quarter without major title releases, our group's sales and profit were lower compared to the previous fiscal year," said CEO Yoichi Wada. "At the same time, however, we are making solid progress toward our targets for the full fiscal year ending March 2012."
The report highlighted growth in PCs and smartphones, particularly the online portal Nicotto Town and the online simulation game Sengoku Ixa, and expects an earnings recovery, "from next fiscal year ending March 31, 2013 and beyond.
The company's targets for the fiscal year ending March 2012 are ¥130,000 million ($1.6b) in revenue, a marginal increase on last year's figure of ¥124,271 million. Net profit is forceast as ¥5,000 million ($63.6m), versus last year's net loss of ¥12,043 million.