Square Enix returned to profitability in financial year 2012, and is contemplating mergers and acquisitions to sustain that momentum.
For the year ending March 31 2012, Square Enix posted revenues of ¥127.9 billion ($1.6b/£993m/€1.23b), and increase of 2.1 per cent over the prior year. Net profits were ¥6.1 billion ($76m/£47m/€59m), a marked improvement on the previous year's loss of ¥12 billion.
While Square Enix's business covers a number of areas - including amusements, publishing and merchandising - the turnaround was largely due to the Digital Entertainment division.
Key performers like Final Fantasy XIII-2, Deus Ex: Human Revolution and the Mobage simulation game Sengoku Ixa - which now has 2 million registered users - spurred the division to revenues of ¥71.9 billion, up 11.9 per cent year-on-year, and operating profit of ¥12.6 billion, up 11.7 per cent.
The financial report acknowledges that the return to sustained profitability is one of the company's key objectives for the future, and it has "internal reserves" for investments that can "enhance the value" of the company.
This could include "capital investments and M&A for the purpose of expanding existing business and developing new businesses." Such deals would be a part of a broader strategy to meet the demands of an increasingly digital, networked, multi-device market.