Financial Results
Briefing Session
Three‐Month Period Ended June 30, 2021
August 5, 2021
SQUARE ENIX HOLDINGS CO., LTD.
Statements made in this document with respect to SQUARE ENIX HOLDINGS CO., LTD. and its consolidated subsidiaries' (together, "SQUARE ENIX GROUP") plans, estimates, strategies and beliefs are forward‐looking statements about the future performance of SQUARE ENIX GROUP.
These statements are based on management's assumptions and beliefs in light of information available to it at the time these material were drafted and, therefore, the reader should not place undue reliance on them. Also, the reader should not assume that statements made in this document will remain accurate or operative at a later time.
A number of factors could cause actual results to be materially different from and worse than those discussed in forward‐looking statements. Such factors include, but not limited to:
- changes in economic conditions affecting our operations;
- fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro;
- SQUARE ENIX GROUP's ability to continue to win acceptance of our products and services, which are offered in highly competitive markets characterized by the continuous introduction of new products and services, rapid developments in technology, and subjective and changing consumer preferences;
- SQUARE ENIX GROUP's ability to expand international success with a focus on our businesses; and
- regulatory developments and changes and our ability to respond and adapt to those changes.
The forward‐looking statements regarding earnings contained in these materials were valid at the time these materials were drafted. SQUARE ENIX GROUP assumes no obligation to update or revise any forward‐looking statements, including forecasts or projections, whether as a result of new information, subsequent events or otherwise.
The financial information presented in this document is prepared according to generally accepted accounting principles in Japan.
(Amounts under one hundred million yen are rounded down)
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Change in accounting policies:
Application of accounting standards for revenue recognition
1. Recognition of some revenue from digital content on third‐party platforms
(Before) Amount received from customer net of platform commissions (After) Total payment received from customer
2. Recognition of microtransactions as part of digital content revenue
(Before) | Upon conversion to an in‐game item |
(After) | Based on expected duration of item used by customer |
3. Accounting for estimated losses previously posted as "Provisions for sales returns" in anticipation of returns of publications, game software, etc.
(Before) | Posted to "Provision for sales returns" and "Reversal of provision for |
sales returns" | |
(After) | Recognize revenue and cost of sales having deducted amounts |
equating to the returns we anticipate |
Financial Impact on FY2022/3 Q1
Net Sales | Operating Income, Ordinary Income, Profit before Income Taxes |
+6,164 million yen | +164 million yen |
- FY2021/3: We won't present FY2021/3 data with these accounting policies applied retroactively.
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Financial Results
First Quarter of Fiscal Year
Ending March 31, 2022
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Consolidated Statement of Income
Q1, FY2022/3
(Billions of Yen) | ||||||
Fiscal Year Ended | Fiscal Year Ending | |||||
March 31, 2021 | March 31, 2022 | |||||
Apr ‐ Jun | Full Year | Apr ‐ Jun | Changes | Full Year | Changes | |
Results | Forecasts | |||||
Net sales | 87.0 | 332.5 | 88.6 | 1.6 | 340.0 | 7.5 |
Operating income | 24.5 | 47.2 | 17.3 | (7.2) | 40.0 | (7.2) |
Operating income margin | 28.2% | 14.2% | 19.5% | (8.7pt) | 11.8% | (2.4pt) |
Ordinary income | 24.1 | 49.9 | 17.6 | (6.5) | 40.0 | (9.9) |
Ordinary income margin | 27.8% | 15.0% | 19.9% | (7.9pt) | 11.8% | (3.2pt) |
Profit attributable to | 14.3 | 26.9 | 12.6 | (1.7) | 24.0 | (2.9) |
owners of parent | ||||||
Depreciation and | 1.7 | 7.5 | 1.6 | (0.1) | 7.1 | (0.4) |
amortization | ||||||
Capital expenditure | 1.5 | 7.3 | 1.9 | 0.4 | 10.5 | 3.2 |
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Square Enix Holdings Co. Ltd. published this content on 05 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2021 08:51:09 UTC.