Square Enix revises operating income forecasts to reach new company record, thanks to Final Fantasy XIV
Square Enix has posted its Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2022 [PDF], in which the publisher highlights sales and income numbers for the first three quarters of the current fiscal year.
Within the results, the company notes that despite releases of Outriders, NieR Replicant ver.1.22474487139..., and Marvel’s Guardians of the Galaxy, the HD Games sub-segment’s net sales declined compared to the same period of the previous fiscal year, which saw Final Fantasy VII Remake and Marvel's Avengers. However, in the MMO (Massively Multiplayer Online) Game sub-segment, sales rose YoY, due to Final Fantasy XIV's paying subscriber base and the release of the Endwalker expansion. This leads to an overall YoY rise in both net sales and operating income for the Digital Entertainment segment.
Perhaps most notably, Square Enix has upped its forecasts for operating income, due primarily to the success of Final Fantasy XIV, as well as merchandise sales. [PDF] The publisher now expects an operating income of 50 billion yen, compared to a previous forecast of 40 billion yen. This would be the highest operating income for the company, beating last year's record of 47.2 billion yen. Net sales are still forecast to be at 340 billion yen, which would also be a company record.
Square Enix's statement on its revised forecasts can be found below. More information can be found on Square Enix's IR page.
The Company now expects higher operating income than previously anticipated under its consolidated financial forecasts for the fiscal year through March 31, 2022. Among the factors contributing to this revision are substantial growth in the number of paying subscribers for “Final Fantasy XIV” and brisk expansion pack sales in the MMO (Massively Multiplayer Online) Game sub-segment, as well as sales of character merchandise based on the Company’s own content exceeding its initial expectations in the Merchandising segment. The Company also expects higher ordinary income and profit attributable to owners of parent than it had previously forecast, in part because the yen has been weaker than the Company had initially assumed. Lastly, the Company’s outlook has been updated to reflect the spread of COVID-19, fluctuations in foreign exchange rates, the competitive environment, etc.