Square Enix (9684) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥69.9B, down 18.4% year-over-year, while operating income surged to ¥10.8B, up 250.1% year-over-year.

• Profit attributable to owners of parent increased to ¥10.6B, up 68.6% year-over-year.

• Operating income margin improved to 15.5% from 3.6% year-over-year.

• Comprehensive income reached ¥10.9B, up 78.4% from the prior year.

Financial highlights

• Gross profit for the quarter was ¥29.3B, with a gross margin of 41.8%.

• Ordinary income rose to ¥15.2B, up 66.7% year-over-year.

• Cash and deposits stable at ¥225.9B; total assets increased to ¥413.2B.

• Shareholders' equity rose to ¥332.8B; total net assets at ¥324.9B; equity ratio improved to 78.5%.

• Basic earnings per share were ¥88.52, up from ¥52.61 a year earlier.

Outlook and guidance

• Full-year net sales forecast at ¥310.0B, operating income at ¥40.0B, and profit attributable to owners at ¥28.0B.

• Full-year operating income forecast up ¥7.5B from prior year.

• Major new HD game titles planned for launch in FY2025, including key IP releases.

• The company refrains from disclosing forecasts for the six-month period ending September 30, 2024.