Square Enix FY07 profits down 20%

Square Enix has announced its earnings for fiscal year 2007, reporting a profit of JPY 9.2 billion (USD 88.5 million) - down 20.9 per cent from the prior year.

Sales were down 9.8 per cent to JPY 147.5 billion (USD 1.42 billion). The most notable decline occurred in the North American market. The company sold 6.15 million games in North America in FY 2006, but only 3.79 million in FY 2007. It expects to sell 2.7 million titles in North America this fiscal year.

Europe still represents approximately 21 per cent of Square Enix' sales - the same as in FY 2006 - but Japan's share has increased from 43 per cent to 52 per cent.

Online games sales declined 11.4 per cent to JPY 12.1 billion, with recorded operating income falling 13.1 per cent to JPY 5.9 billion. Sales and operating income in the mobile phone and amusement divisions also declined from the prior year.

For the current fiscal year which ends March 31, 2009, Square Enix has forecast an increase in net sales to JPY 160 billion, with operating income decreasing slightly to JPY 21 billion.