Square Enix Raises Full-Year Projections Despite Slightly Weaker Second Quarter

Square Enix’s second quarter of the 2015 fiscal year wasn’t quite as strong as last year, but that hasn’t stopped the publisher from raising its forecast. The company’s net income at the half-year mark exceeds last fiscal year by 118.8 percent.

Half-year sales, operating income, and net income are all up from the same time last year, despite a comparatively weaker second quarter. Sales in the period ending September 30 were ¥35.38 billion ($309.5 million) compared to last year’s quarterly sales of ¥37.58 billion ($328.8 million).

Net income for the quarter was ¥2.29 billion ($20.1 million) against last year’s performance of ¥3.1 billion ($27.12 million). Despite the slightly softer three-month period, Square Enix is projecting a big increase for it’s full year.

The sales forecast has been raised from ¥140 - ¥150 billion ($1.23 - $1.31 billion) to ¥150 - ¥160 billion ($1.31 - $1.4 billion). Square Enix closed its last fiscal year with sales revenue of ¥155 billion ($1.36 billion).

The company also raised its income projection from ¥3.5 - ¥6.5 billion ($30.6 - $61.3 million) to ¥7 - ¥10.5 billion ($61.3 million - $91.9 million). The company ended fiscal 2014 with ¥6.6 billion ($57.8 million).

Square Enix’s coming console release schedule is a bit thin, with Kingdom Hearts HD 2.5 Remix (and the recently announced collector’s edition) the biggest thing for the remainder of the fiscal year. Final Fantasy XIV will be introduced in mainland China next summer, which should introduce a surge of revenue.

The publisher has three major retail titles in development, though not all of them will hit in the coming fiscal year. Final Fantasy XV, Kingdom Hearts III, and Rise of the Tomb Raider are the games we know about. MMO revenues from both online Final Fantasy games and Dragon Quest X also support the company’s work.

[Source: Square Enix (1), (2)]

Our Take
This is a company in turnaround. It was only last year that Square Enix’s overly aggressive predictions for Tomb Raider, Sleeping Dogs, and Hitman made us scratch our heads. With a leadership change and a revision to operations, it seems the publisher is on the right track. There’s certainly anticipation for its upcoming roster.