SQUARE ENIX HOLDINGS CO., LTD. Reports Financial Results For The Six-Month Period Ended September 30, 2018

TOKYO, Nov. 7, 2018 /PRNewswire/ -- SQUARE ENIX HOLDINGS CO., LTD. (the "Company") today announced consolidated results for the six-month period ended September 30, 2018. The Company is listed on the Tokyo Stock Exchange, First Section with the stock code "9684" and prepares its financial statements according to Japan GAAP.

In the Digital Entertainment segment during the six-month period ended September 30, 2018, we launched "OCTOPATH TRAVELLER," a brand new IP, and "SHADOW OF THE TOMB RAIDER," the final chapter of the rebooted TOMB RAIDER trilogy in the console games area. Overall this sub-segment's net sales and operating income decreased compared to the same period of the prior fiscal year.

In the smart devices and PC browser area, most of the titles launched in the prior fiscal year performed below expectations and failed to generate additional revenue on top of that from existing established games. A decrease in licensing income also contributed to a year-on-year decline in net sales and operating profit.

In the area of massively multiplayer online role playing games, net sales and operating profit decreased compared to the same period of the prior fiscal year, which had seen the launch of an expansion disk for "FINAL FANTASY XIV."

In the Amusement segment, amusement facility operations remained solid, but amusement machines remained sluggish as no new amusement machines were launched.

In the Publication segment, sales of comic-books remained brisk as growth in digital formats offset a year-on-year decline in paper-media sales.

In the Merchandising segment, both net sales and operating profit declined year-on-year during the six- month period ended September 30, 2018, due to the high hurdle set in the same period of the prior fiscal year by the release of merchandise based on characters in the Group's IP portfolio.

In addition, the Company announced that it had conducted an in-depth review of the business strategy for a wholly-owned subsidiary, Luminous Productions Co., Ltd. This decision has resulted in the booking of an extraordinary loss amounting to 3,733 million yen, including the disposition of the portion of the content production account related to the aforementioned subsidiary, in the Company's financial results for the six-month period ended September 30, 2018. For details of this announcement, please refer to the document "Notice of Booking of Extraordinary Loss" disclosed today.

About Square Enix Holdings Co., Ltd.
Square Enix Holdings Co., Ltd. with headquarters in Tokyo, Japan, is the holding company leading the group of Square Enix companies (the "Square Enix Group") with a diverse range of content and service businesses. The Square Enix Group publishes, distributes and licenses entertainment content around the world under its internationally renowned brands including SQUARE ENIX®, EIDOS® and TAITO®. The Square Enix Group includes a global network of leading development studios located in North America, Europe and Japan. The Square Enix Group also boasts a valuable portfolio of intellectual property including: FINAL FANTASY®, which has sold over 142 million units worldwide; DRAGON QUEST®, which has sold over 76 million units worldwide; TOMB RAIDER®, which has sold over 67 million units worldwide; and the legendary SPACE INVADERS®.

More information on Square Enix Holdings Co., Ltd. can be found at http://www.hd.square-enix.com/eng/

*Unit sales are the total number of cumulative package shipment and digital sales. Digital sales are the cumulative unit number in and after April 2015, and include full-game downloads of packaged games and download-only games for console and PC.

Media, analyst and investor contacts:
Tokyo: +81.3.5292.8000
Email: [email protected]

Disclaimer
The forward-looking statements in this document are based upon the information currently available, and necessarily include elements that are not entirely predictable. Actual results may differ from the forward-looking statements in this document.

DRAGON QUEST, EIDOS, FINAL FANTASY, SPACE INVADERS, SQUARE ENIX, the SQUARE ENIX logo, TAITO and TOMB RAIDER are registered trademarks or trademarks of the Square Enix Group. All other trademarks are the property of their respective owners.

SOURCE SQUARE ENIX HOLDINGS CO., LTD.

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