SQUARE ENIX HOLDINGS CO., LTD. Announces Financial Results For The Three-Month Period Ended June 30, 2020

TOKYO, Aug. 6, 2020 /PRNewswire/ -- SQUARE ENIX HOLDINGS CO., LTD. (the "Company") today announced consolidated financial results for the three-month period ended June 30, 2020. The Company is listed on the First Section of the Tokyo Stock Exchange, with the stock code "9684," and prepares its financial statements according to the Japan GAAP.

For additional information, please refer to the full-length Consolidated Financial Results document at: https://www.hd.square-enix.com/eng/21q1earnings.pdf, or the Company's IR website: https://www.hd.square-enix.com/eng/ir/ .

At the HD (High-Definition) Game sub-segment, the three-month period ended June 30, 2020 included the April release of "FINAL FANTASY VII REMAKE." Sales of packaged copies of the game were lower than had been initially expected as the Group limited production and shipments in anticipation of slowdowns and disruptions to the distribution process due to the spread of COVID-19. By contrast, digital sales grew significantly, helping to bolster profitability. This, combined with the launch of "TRIALS OF MANA" and with licensing income, resulted in higher net sales and operating income than in the same period of the previous fiscal year.

In the MMO (Massively Multiplayer Online) Game sub-segment, net sales and operating income rose versus the same period of the previous fiscal year thanks to growth in the number of monthly paying subscribers for "FINAL FANTASY XIV."

In the Games for Smart Devices/PC Browser sub-segment, net sales and operating income were higher than in the same period of the previous year owing to earnings contributions from "DRAGON QUEST WALK" and "War of the Visions: Final Fantasy Brave Exvius," both of which were launched in or after the second quarter of the previous fiscal year.

In the Amusement segment, in response to the Japanese government's declaration of a state of emergency, the Group's amusement facilities closed temporarily nationwide as part of the effort to combat the spread of COVID-19. With this, the result of the three-month period ended June 30, 2020 was a sharp decline in net sales versus the same period of the previous year and an operating loss.

In the Publication segment, sales in digital formats, including via the "MANGA UP!" comic app and of e-books, rose sharply in the three-month period ended June 30, 2020. This, combined with brisk sales of printed media, resulted in higher net sales and operating income than in the same period of the previous fiscal year.

In the Merchandising segment, brisk sales of character merchandise, soundtracks, and other products based on the Group's own content during the three-month period ended June 30, 2020 resulted in growth in net sales and operating income versus the same period of the previous fiscal year.

About Square Enix Holdings Co., Ltd.

Square Enix Holdings Co., Ltd. with headquarters in Tokyo, Japan, is the holding company leading the group of Square Enix companies (the "Square Enix Group") with a diverse range of content and service businesses. The Square Enix Group publishes, distributes and licenses entertainment content around the world under its internationally renowned brands including SQUARE ENIX®, EIDOS® and TAITO®. The Square Enix Group includes a global network of leading development studios located in North America, Europe and Japan. The Square Enix Group also boasts a valuable portfolio of intellectual property including: FINAL FANTASY®, which has sold over 154 million units worldwide; DRAGON QUEST®, which has sold over 82 million units worldwide; TOMB RAIDER®, which has sold over 78 million units worldwide; and the legendary SPACE INVADERS®.

More information on Square Enix Holdings Co., Ltd. can be found at https://www.hd.square-enix.com/eng/

*Unit sales are the total number of cumulative package shipment and digital sales. Digital sales are the cumulative unit number in and after April 2015, and include full-game downloads of packaged games and download-only games for console and PC.

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Disclaimer

The forward-looking statements in this document are based upon the information currently available, and necessarily include elements that are not entirely predictable. Actual results may differ from the forward-looking statements in this document.

DRAGON QUEST, EIDOS, FINAL FANTASY, SPACE INVADERS, SQUARE ENIX, the SQUARE ENIX logo, TAITO and TOMB RAIDER are registered trademarks or trademarks of the Square Enix Group. All other trademarks are the property of their respective owners.

SOURCE SQUARE ENIX HOLDINGS CO., LTD.