Square Enix Q1 Results Slide On Weaker Game Sales, FX Losses

(RTTNews) - Square Enix Holdings (SQNXF), on Friday, reported consolidated net sales of Yen59.3 billion for the three-month period ended June 30, 2025, down 15.2% from Yen69.9 billion in the same quarter of last year.

The decline was primarily driven by lower performance in the Digital Entertainment segment, especially in HD and MMO games, which faced weaker title launches and reduced player engagement.

Operating income fell 16.8% year-over-year to Yen9.0 billion, compared to Yen10.8 billion in Q1 FY2024. The drop reflects reduced revenue and higher amortization costs, although some cost efficiencies were noted in advertising and development.

Ordinary income plunged 55.0% to Yen6.9 billion from Yen15.3 billion in the previous year, primarily due to a foreign exchange loss of Yen2.1 billion resulting from the strength of the yen.

Profit attributable to owners of the parent declined 54.8% to Yen4.8 billion, down from Yen10.6 billion in the prior-year period. Earnings per share dropped to Yen 39.96 from Yen 88.51, reflecting the sharp contraction in net income.

Comprehensive income also declined significantly by 58.3% to Yen4.6 billion from Yen10.9 billion last year.