Monday, November 11th started off poorly for the Japanese company Square Enix as their stocks fell. According to the Nikkei newspaper, their price dropped by 12.37% to 5,400 yen per share ($35.4 USD).
Final Fantasy VII Rebirth
Most likely, investors reacted to the financial report from Square Enix for the fiscal half-year ending on September 30, 2024.
Below are key points from the company's report.
- Compared to March-September 2023, Square Enix's net sales dropped by 8.4%, amounting to 157.6 billion yen ($1 billion USD).
- The company's half-year operating profit rose by 22% to 21.17 billion yen ($137.8 million USD). At the same time, ordinary income fell by 30.6% to 18.14 billion yen ($118 million USD).
- Net sales in the mobile and browser game subsegment dropped by 29.7% to 38.2 billion yen ($248 million USD). Its operating profit plummeted by 50.5%, falling to 4.8 billion yen ($31.2 million USD).
- The net sales of the so-called HD games subsegment for consoles and PC fell by 37% to 27.5 billion yen ($179 million USD). The subsegment ended the half-year with a loss of 1.2 billion yen ($7.8 million USD), an improvement compared to last year when Square Enix reported its loss at 2.4 billion yen ($15.6 million USD).
- The MMO subsegment is doing well. Its net sales increased by 35.5% to 32.4 billion yen ($211 million USD), and operating profit grew by 40.8% to 13.1 billion yen ($85 million USD).
- Square Enix sold 10.69 million copies of games over the half-year, 1.48 million fewer than at the same time last year.
- Square Enix partly explained the sales decline by the absence of major releases. Last year, it released Final Fantasy XVI and the console version of the Final Fantasy Pixel Remaster collection, which performed well. From March-September 2024, there were no releases of that scale.