Square Enix Reports 2020 Earnings, MMO Division Reports Record High Revenues and Profits

Square Enix reported their fiscal year 2020 earnings report today for the year ended March 31, 2020 (Their fiscal year ran from March 31, 2019 to March 31, 2020). Total company-side sales came in at 260.5B Yen ($2.43B USD) and operating income (profit) of 32.7B Yen ($310M USD). Company-wide profit margin was 12.6% for the year.

Square Enix's MMO division (Final Fantasy XIV and Dragon Quest X) reported a record year with revenues and profits at an all time high:

Total MMO revenue was 40.1B Yen ($370M USD) and profit was ~19B Yen ($180M USD). The MMO division is much more profitable than the rest of the company with margins at nearly 50%.

Square Enix's mobile game division also reported a strong rebound in sales to hit a record high in 2020. Total revenues were 106.4B Yen (~$1B USD), but profits were only 20B Yen ($190M). Despite reporting over 2.5x the sales as the MMO division, mobile games made nearly same amount of total profit as the MMO division. This is likely due to higher marketing costs and app store commissions.

Square Enix's 'HD Games' division (retail buy to play games) reported a weak year due to Final Fantasy 7 Remake getting delayed into April. Total sales for HD Games was 42 Billion Yen ($390M) and the division reported a loss of 6B Yen ($56M).

Both MMO and Mobile game revenues are at an all time high and next quarter's numbers should be boosted by Final Fantasy 7 Remake and an increased demand for gaming in general due to Coronavirus quarantines. Overall, Square Enix reported a solid year and I suspect the next 12 months will be even better. The market seems to agree as Square Enix stock is near an all time high (Market cap of 606B Yen).

Source: Fiscal Year 2020 Slide Deck