Square Enix Announces Unfavorable Business Year

Square Enix Announces Unfavorable Business Year

Square Enix posted a large but not unexpected net loss for the business year that ended March 31 2013. The 13.7 billion yen ($135m or £88m) compared rather badly to the previous business years impressive 6 billion yen profit. The loss has been attributed to lower than expected sales of the companies major console title releases such as Sleeping Dogs, Tomb Raider and Hitman: Absolution. Also responsible for the years net loss could be the recent initiation of extensive restructuring plans across the company.

The full-year sales of the business actually jumped 15.7 per cent year on year to 148 billion yen ($1.5b or £948m). The Digital Entertainment section of Square, which houses its gaming business, accumulated revenues of 89 billion yen ($876 or £569m). A rise of 24.5 per cent year on year. However, the division’s operating income has fell by a massive 99.7 per cent to 44 million yen ($434,000 or £281,000).

Square, however, expects a comfortable profit for the current financial year that ends March 31 2014, predicting net sales of 140-150 billion yen ($1.4-1.5b or $896-960m)and a net income of 3.5-6 billion yen ($34-59m or £22-38m). As part of the restructuring plans the company announced in march, the publisher recently reduced jobs in the US and Europe. The plans will also include the resignation
of Yoichi Wada, the company president, who will resign in June. Square Enix has faith that these changes in their business structure will have favorable consequences on their current financial year.


Article from Gamersyndrome.com

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