On Friday, August 4, Square Enix published a report for the first quarter of fiscal 2024, which ended on June 30. In it, the company reported a significant drop in profits.
▪️Square Enix’s net sales amounted to $601 million. An increase of 14.4% compared to last year. Most of the amount was provided by the Digital Entertainment division, which deals with video games — $438 million (+16.4%).
▪️HD games brought Square Enix $203 million (+133%), mobile and browser games — $157 million (-18.3%), and MMO — $78 million (-22%).
▪️The operating profit of the entire company fell by 78.5% to $21.7 million. Digital Entertainment’s operating profit also declined significantly — by 80.8% to $19 million.
▪️As Square Enix explained, Digital Entertainment’s operating profit fell due to depreciation of game development costs. This also affected the income of the entire company.
During the quarter, Square Enix sold 7.54 million copies of games. 3.26 million more than a year earlier.
After the opening of trading on the stock exchange on the morning of August 7, the value of Square Enix shares dropped by 15% to 5,620. This is the lowest price since May 2022.