Mobile helps Square Enix back to profitability, $75.9 million in net income

Square Enix is once again profitable, thanks to an increase in net sales and income assisted by its growing mobile gaming business. According to the company’s most recent financial results for the fiscal year ending on March 31, 2012, net sales rose 2.1 percent year-on-year to 127.8 billion yen ($1.6 billion), good enough for the company to see 6.06 billion yen in net income ($75.9 million). Its a significant turnaround for the company, which reported a net loss of 12.04 billion yen ($150.8 million) last year. The company’s digital entertainment division, which includes both traditional console games and the company’s growing line-up of mobile titles saw net sales increase by 11.9 percent year-over-year to 7.18 billion yen ($89.4 million). The division’s operating income grew to 1.26 billion yen ($15.7 million), up 11.7 percent year over year. Square Enix credited its return to profitability on the success of titles like like Deus Ex: Human Revolution, and Final Fantasy Brigade, a social battle game on DeNA’s Mobage network. The game recently passed two million total members, and Square Enix’s earning results described the title’s growth as “robust”. Overall, Square Enix has moved aggressively into the mobile market. In addition to its lineup of Japanese mobile-social titles, the company has re-released many classic games from its back catalogue as premium iOS ports ranging in price $8.99 to $15.99. The company has developed several original-to-mobile series like Chaos Rings, Song Summoner and Crystal Defenders, and is also trying its hand at publishing, releasing Freeze Tag’s hidden object game Victorian Mysteries: Woman in White on May 3. Square Enix is one of several well-known Japanese game companies seeing its fortunes boosted by its mobile business. Last week rival Capcom reported its mobile income rose 76.4 percent to $28.9 million during its fiscal year, helping offset the company’s otherwise sluggish sales. The company is predicting its net sales will hit 165 billion yen ($2.06 billion) in the fiscal year ending on March 31, 2013, with a net income of 9 billion yen ($112.77 million). The company's stocks fell 2.96 percent on news, declining to 1,442 yen ($18.06).

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Mobile helps Square Enix back to profitability, $75.9 million in net income

Kathleen De Vere

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Kathleen De Vere