Square Enix posts operating income drop of 83%

Square Enix has recorded an operating income drop of 82.8 per cent in its latest financials, down to JPY 594 million (USD 6.1 million) for the three months ending June 30 2009.

Net sales for the period were JPY 2.4 billion (USD 302.1 million) - a drop of 1.2 per cent on last year - and net income showed a loss of JPY 1.7 billion (USD 17.2 million) compared to a profit of 2.9 billion yen (USD 30 million) during the same quarter in 2008. The report however reminds investors the purchase of Eidos is included in this segment - a deal which cost the company around USD 139 million.

Breaking down the company's results, its game's business saw a sales rise of 7.2 per cent during the quarter, to JPY 8.5 billion (USD 87.5 million), but recorded an operating loss of JPY 992 million (USD 10 million) compared to an operating profit of JPY 1.7 billion (USD 17 million) in 2008.

Its mobile phone group also recorded a growth in sales - up 1.2 per cent to JPY 2.7 billion (USD 27 million), with operating revenue also up 11.6 per cent to JPY 1.2 billion (USD 12 million).

Overall sales in Japan, where games such as Crisis Core: Final Fantasy VII, Kingdom Hearts: Chain of Memories and Dragon Quest IX have been selling strongly, were up 5.3 per cent on last year. In North America, however, sales were down 29.1 per cent, and in Europe they were down 42 per cent.

Despite the drop in income recorded in the latest quarterly results, the company has forecast full year net income of JPY 15 billion (USD 154.3 million).