Square Enix is laughing all the way to the bank. The industry stalwart reported its results for its fiscal year, which ended in March 31, 2017. Total revenue was 257 billion yen (~$2.26 billion), a stunning 20% increase year over year. Net income rose 0.8 percent, to 20 billion yen (~$176 million).
According to Square, sales in the company’s Digital Entertainment division rose by 25%, to 199 billion yen (~$1.75 billion). The company said that major releases, including Final Fantasy XV and the PlayStation 4 launch of Rise of the Tomb Raider, led to a material increase in console sales. In contrast, the company’s MMORPG business showed steady performance in terms of operational revenues (i.e. subscription fees), but significant declines in sales and operating income compared to the previous fiscal year. Square explained that the decline was due to lack of expansion disk releases.
Square’s mobile division sales and operating income increased significantly compared to the previous fiscal year, primarily thanks to the strong performance of existing major titles, including Hoshi No Dragon Quest, Final Fantasy Brave Exvius, and Kindgom Hearts Union X. The company’s arcade business showed favorable results, with positive sales of Gunslinger Stratos3 and Love Live! School idol festival – after school ACTIVITY – and steady performance from its arcades.
Square’s Merchandising division also reported steady performance, with sales and licensing of character goods
and soundtracks on track.
Curiously, the company also briefly announced its intention to divest itself of wholly‐owned subsidiary Io Interactive, the Danish developers responsible for the Hitman series. Square explained that it was “focusing our resources and energies on key franchises and studios.” As a result of the decision, the company booked an extraordinary loss of 4.89 billion yen ($43 million).
Square Enix is not allowing its good results go to its collective head. The company has issued guidance for the upcoming fiscal year, expecting total revenues of 240 billion yen ($2.11 billion) and net income of 16.5 billion yen ($145.2 million) by March 31, 2018.