Consolidated Financial Results
for the Six-Month Period Ended September 30, 2021 (Japan GAAP)
November 5, 2021
Company name: | SQUARE ENIX HOLDINGS CO., LTD. |
Shares traded: | Tokyo Stock Exchange, First Section |
Company code: | 9684 |
Company URL: | https://www.hd.square-enix.com/eng |
Representative: | Yosuke Matsuda, President and Representative Director |
Contact: | Atsushi Matsuda, Chief Accounting Officer |
Tel: | (03) 5292-8000 |
Financial report submission: | November 11, 2021 (planned) |
Cash dividend payment commencement: | December 6, 2021 (planned) |
Supplementary quarterly materials prepared: Yes | |
Quarterly results presentation held: | Yes (for institutional investors and analysts) |
(Amounts under one million yen are rounded down)
1. Consolidated Financial Results (April 1, 2021 through September 30, 2021)
(1) Consolidated Financial Results | (Millions of yen and year-on-year changes in percents) | ||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||||
owners of parent | |||||||||||
Six months ended | % | % | % | % | |||||||
September 30, 2021 | 168,917 | (2.2) | 29,146 | (7.9) | 31,483 | 3.1 | 22,991 | 43.3 | |||
September 30, 2020 | 172,731 | 43.0 | 31,655 | 98.9 | 30,537 | 95.6 | 16,047 | 46.3 | |||
Note: Six months ended September 30, 2021 Comprehensive income: 22,903 million yen [43.8%] | |||||||||||
Six months ended September 30, 2020 Comprehensive income: 15,928 million yen [47.1%] | |||||||||||
Earnings per | Earnings per | ||||||||||
share, basic | share, diluted | ||||||||||
Six months ended | yen | yen | |||||||||
September 30, 2021 | 192.48 | 192.04 | |||||||||
September 30, 2020 | 134.49 | 134.17 |
Note: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and other standards as of the start of the first quarter of the consolidated fiscal year ending March 31, 2022 and figures for the year ending March 31, 2022 reflect this change of accounting method.
(2) Consolidated Financial Position | (Millions of yen, ratios in percents and per share data) | |||||
Total assets | Net assets | Equity ratio | ||||
As of | % | |||||
September 30, 2021 | 341,687 | 258,494 | 75.4 | |||
March 31, 2021 | 336,144 | 243,278 | 72.1 | |||
Note 1. Total equity As of September 30, 2021: | 257,602 | million yen | ||||
As of March 31, 2021: | 242,364 | million yen |
2. The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and other standards as of the start of the first quarter of the consolidated fiscal year ending March 31, 2022 and figures for the year ending March 31, 2022 reflect this change of accounting method.
2. Dividends
Dividends per share | |||||||
1Q | 2Q | 3Q | 4Q | Total | |||
yen | yen | yen | yen | yen | |||
Fiscal year ended | - | 10.00 | - | 68.00 | 78.00 | ||
March 31, 2021 | |||||||
Fiscal year ending | - | 10.00 | |||||
March 31, 2022 | |||||||
Fiscal year ending | |||||||
March 31, 2022 | - | 51.00 | 61.00 | ||||
(projection) | |||||||
Note: No change in Dividend projection from previous announcement.
3. Consolidated Forecasts (April 1, 2021 to March 31, 2022)
(Millions of yen, year-on-year changes in percents and per share data)
Net sales | Operating income | Ordinary income | Profit attributable to | Earnings | |||||
owners of parent | per share | ||||||||
% | % | % | % | yen | |||||
Fiscal year ending | |||||||||
March 31, 2022 | 340,000 | 2.2 | 40,000 | (15.3) | 40,000 | (20.0) | 24,000 | (10.9) | 201.10 |
Note 1. No change in consolidated forecasts from previous announcement.
2. The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) and other standards as of the start of the first quarter of the consolidated fiscal year ending March 31, 2022 and figures for the year ending March 31, 2022 reflect this change of accounting method.
Notes
- Significant changes among major subsidiaries during the period: No
- Adoption of special accounting treatment for quarterly consolidated financial statements: No
- Changes in accounting policies, procedures, and methods of presentation for consolidated financial statements
- Changes in accounting policies due to revisions to accounting standards: Yes
- Changes other than 1. : No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Outstanding shares (common stock)
- Number of shares issued and outstanding (including treasury stock):
As of September 30, 2021 | 122,531,596 | |
As of March 31, 2021 | 122,531,596 | |
2. | Number of treasury stock: | |
As of September 30, 2021 | 2,978,756 | |
As of March 31, 2021 | 3,122,037 | |
3. | Average number of shares during the period (cumulative): | |
Six-Month period ended September 30, 2021 | 119,451,428 | |
Six-Month period ended September 30, 2020 | 119,317,254 |
Disclaimer: (1) This document is a translation of the Japanese language "Kessan Tanshin" prepared in accordance with the guidelines of the Tokyo Stock Exchange. The Japanese language document shall prevail in the event any differences or discrepancies exist between this English translation and the original. (2) At the time of disclosure of this report, review procedures for quarterly financial statements pursuant to the Financial Instruments and Exchange Law had not been completed. (3) The forward-looking statements in this document are based upon the information currently available and necessarily include elements that are not entirely predictable. The achievement is not promised. Actual results may differ from the forward-looking statements in this document. (4) For additional information about forecasts, please refer to "1. Consolidated Results for the Six-Month Period Ended September 30, 2021. (3) Qualitative information on consolidated business forecasts" section on page 4 of Supplemental Information.
Supplemental Information - Index
Page | ||
1. Consolidated Results for the Six-Month Period Ended September 30, 2021 | 2 | |
(1) | Analysis of consolidated business results | 2 |
(2) | Analysis of consolidated financial position | 3 |
(3) | Qualitative information on consolidated business forecasts | 4 |
2. Consolidated Financial Statements for the Six-Month Period Ended September 30, 2021 | 5 | |
(1) | Consolidated Balance Sheets | 5 |
(2) | Consolidated Income Statement and Consolidated Statement of Comprehensive Income | 7 |
Consolidated Income Statement | 7 | |
Consolidated Statement of Comprehensive Income | 8 | |
(3) | Notes to Consolidated Financial Statements | 9 |
(Note regarding going concern assumptions) | 9 | |
(Material changes in shareholders' equity) | 9 | |
(Changes in accounting policies) | 9 | |
(Additional information) | 10 | |
(Segment information) | 11 |
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1. Consolidated Results for the Six-Month Period Ended September 30, 2021
(1) Analysis of consolidated business results
The Square Enix group (the "Group") is continuing determined efforts to strengthen the competitiveness and profitability of its business segments of Digital Entertainment, Amusement, Publication and Merchandising. Net sales for the six-month period ended September 30, 2021 totaled ¥168,917 million (a decrease of 2.2% from the same period of the prior fiscal year), operating income amounted to ¥29,146 million (a decrease of 7.9% from the same period of the prior fiscal year),and ordinary income amounted to ¥31,483 million (an increase of 3.1% from the same period of the prior fiscal year), and profit attributable to owners of parent amounted to ¥22,991 million (an increase of 43.3% from the same period of the prior fiscal year).
A discussion of results by segment for the six-month period ended September 30, 2021 follows.
●Digital Entertainment
The Digital Entertainment segment consists of planning, development, distribution, and operation of digital entertainment content primarily in the form of game. Digital entertainment content is offered to meet customer lifestyles across a variety of usage environments such as consumer game consoles (including handheld game machines), personal computers and smart devices.
At the HD (High-Definition) Game sub-segment, the six-month period ended September 30, 2021 saw the release of such titles as "Outriders," "NieR Replicant ver.1.22474487139...," "NEO: The World Ends with You," and "Life is Strange: True Colors." However, the sub-segment's net sales declined compared to the same period of the previous fiscal year, which had seen the release of "FINAL FANTASY VII REMAKE" and "Marvel's Avengers."
In the MMO (Massively Multiplayer Online) Game sub-segment, rose compared to the same period of the previous fiscal year due to sharp growth in the number of monthly paying subscribers for "FINAL FANTASY XIV."
The Games for Smart Devices/PC Browser sub-segment saw net sales decline compared to the same period of the previous fiscal year, in part due to lackluster performances by existing titles.
Net sales and operating income in the Digital Entertainment segment totaled ¥129,451 million (a decrease of 9.1% from the same period of the prior fiscal year), and ¥29,499 million (a decrease of 12.8% from the same period of the prior fiscal year), respectively.
●Amusement
The Amusement segment consists of the operation of amusement facilities and planning, development, and distribution of arcade game machines and related products for amusement facilities.
Compared to the same period of the previous fiscal year, the six-month period ended September 30, 2021 saw a substantial rise in net sales and a turn to profit at the operating line because the segment had sustained significant impact in the previous year from the temporary closure of amusement facilities in Japan, a move undertaken to combat the spread of COVID-19 in response to the Japanese government's declaration of a state of emergency.
Net sales and operating income in the Amusement segment totaled ¥21,070 million (an increase of 51.3% from the same period of the prior fiscal year), and ¥653 million (operating loss of ¥1,623 million in the same period of the prior fiscal year), respectively.
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●Publication
The Publication segment consists of publication and licensing of comic magazines, comic books, and game- related books.
Sales of e-books and other digital media rose in the six-month period ended September 30, 2021. Sales of printed media were also brisk, resulting in higher net sales and operating income than in the same period of the previous fiscal year.
Net sales and operating income in the Publication segment totaled ¥14,148 million (an increase of 14.3% from the same period of the prior fiscal year) and ¥5,973 million (an increase of 11.4% from the same period of the prior fiscal year), respectively.
●Merchandising
The Merchandising segment consists of planning, production, distribution, and licensing of derivative products of IPs owned by the Group.
Brisk sales of new character merchandise based on the Group's own content during the six-month period ended September 30, 2021 resulted in higher net sales and operating income than in the same period of the previous fiscal year.
Net sales and operating income in the Merchandising segment totaled ¥5,804 million (an increase of 20.7% from the same period of the prior fiscal year), and ¥1,796 million (an increase of 17.5% from the same period of the prior fiscal year), respectively.
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Analysis of consolidated financial position
●Assets
As of September 30, 2021, total current assets were ¥287,611 million, an increase of ¥3,988 million compared to March 31, 2021. This was mainly due to an increase in content production account of ¥11,621 million, while notes and accounts receivable - trade, and contract assets and cash and deposits decreased by ¥5,442 million and ¥2,728 million respectively. As of September 30, 2021, total non-current assets were ¥54,076 million, an increase of ¥1,554 million compared to March 31, 2021.
As a result, total assets were ¥341,687 million, an increase of ¥5,543 million compared to March 31, 2021.
●Liabilities
As of September 30, 2021, total current liabilities were ¥70,815 million, a decrease of ¥9,529 million compared to March 31, 2021. This was mainly due to a decrease in income taxes payable of ¥9,747 million. As of September 30, 2021, total non-current liabilities were ¥12,377 million, a decrease of ¥143 million compared to March 31, 2021.
As a result, total liabilities were ¥83,192 million, a decrease of ¥9,673 million compared to March 31, 2021.
●Net assets
As of September 30, 2021, net assets were ¥258,494 million, an increase of ¥15,216 million compared to March 31, 2021. This was mainly due to profit attributable to owners of parent of ¥22,991 million and dividend payments of ¥8,119 million.
As a result, the consolidated equity ratio stood at 75.4% (72.1% as of March 31, 2021).
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Square Enix Holdings Co. Ltd. published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 06:42:10 UTC.