Komori
Earnings presentation9684SQUARE ENIX HOLDINGS CO.,LTD.Information and Communications, Services and Others

Progress Report on the Medium-Term Management Plan (Fiscal Years Ending March 2025 to March 2027)

As part of the progress made under the medium-term management plan, the Company has advanced initiatives including the reorganization of its development structure, cost optimization and expansion of customer touchpoints, and operating profit increased to ¥54.7 billion in the fiscal year ended March 2026. For the fiscal year ending March 2027, the Company plans operating profit of ¥49.0 billion and an operating margin of 16.4%.

Worth reading
63In focus
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
490
¥100 million
Wording
Conditional
How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationFull-year results for the fiscal year ended March 2026 and full-year plan for the fiscal year ending March 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,976 100 million
Operating profit¥547 100 million
Ordinary income¥644 100 million
Net income¥296 100 million
Operating profit margin18.4% actual for the fiscal year ended March 2026; 16.4% plan for the fiscal year ending March 2027 (down 2.0 percentage points year on year)
Full-year earnings forecast
Net Sales
¥2,980 100 million
Operating profit
¥490 100 million
Ordinary income
¥490 100 million
Profit attributable to owners of the parent
¥310 100 million
What the company explained in this material
New initiatives
  • Abolish the domestic business-unit structure and introduce a creative studio structure
  • Establish a global strategy function encompassing the global marketing strategy organization and data-related organizations
  • Launch the pet-goods brand “SQEX PETs”
  • Develop and implement an AI-powered tool to streamline the “typesetting instructions” process in manga production
  • Introduce a performance-linked bonus system
  • Establish a human resources development committee
  • Expand training for new employees and introduce a rotation program
Key KPIsA metric the company considers important as a management benchmark.
Catalog title unit sales
  • Fiscal year ended March 20241,466 10,000 units
  • Fiscal year ending March 20251,684 10,000 units
  • Fiscal year ending March 20261,910 10,000 units
SD business operating margin
  • Fiscal year ended March 202414 %
  • Fiscal year ending March 202511 %
  • Fiscal year ending March 202625 %
Publishing business overseas sales
  • Fiscal year ended March 20242,148 million yen
  • Fiscal year ending March 20252,353 million yen
  • Fiscal year ending March 20262,912 million yen
Overseas franchised AM locations
  • Fiscal year ended March 20241 Location
  • Fiscal year ending March 20254 Location
  • Fiscal year ending March 20268 Location
Segment results
Digital Entertainment (HDG)
Operating profit
Fiscal year ended March 2024
¥-81 100 million
Fiscal year ending March 2025
¥33 100 million
Fiscal year ending March 2026
¥141 100 million
SD business
Operating profit margin
Fiscal year ended March 202414%
Fiscal year ending March 202511%
Fiscal year ending March 202625%
Rights and Properties business
Operating profit
Fiscal year ended March 2024
5,658 million yen
Fiscal year ending March 2025
6,067 million yen
Fiscal year ending March 2026
11,237 million yen
Publishing Business
Overseas revenue
Fiscal year ended March 2024
2,148 million yen
Fiscal year ending March 2025
2,353 million yen
Fiscal year ending March 2026
2,912 million yen
Amusement Business
Overseas revenue
Fiscal year ended March 2024
109 million yen
Fiscal year ending March 2025
619 million yen
Fiscal year ending March 2026
1,496 million yen
Overseas franchised locations
Fiscal year ended March 20241
Fiscal year ending March 20254
Fiscal year ending March 20268
Medium-term management plan targets
Fiscal year ending March 2027 consolidated operating margin15%
ROE10% or higher
Strategic investment budget¥80 billion–¥100 billion
Comparison with actual resultsThe operating margin was 18.4% in the fiscal year ended March 2026
Financial targets
ROETarget of at least 10%
Consolidated operating marginTarget consolidated operating margin of 15% for the fiscal year ending March 2027
Number of stores and locations
The number of overseas franchised AM locations was 1 in the fiscal year ended March 2024, 4 in the fiscal year ended March 2025 and 8 in the fiscal year ended March 2026. The number of openings and closures during each period was Not disclosed.
Annual Dividend
Fiscal year ending March 2026
Annual¥129 (before the stock split) / ¥43 (after the stock split)
Interim¥54 (before the stock split) / ¥18 (after the stock split)
End of period¥75 (before the stock split) / ¥25 (after the stock split)
Forecast for the fiscal year ending March 2027
Annual¥129 (before the stock split) / ¥43 (after the stock split)
Interim¥54 (before the stock split) / ¥18 (after the stock split)
End of period¥75 (before the stock split) / ¥25 (after the stock split)
Payout ratio
Total payout ratio
Fiscal year ending March 202652.3%
Fiscal year ending March 2027Assumed at 50.0%
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredFull-year results for the fiscal year ended March 2026 and full-year plan for the fiscal year ending March 2027
Net Sales¥2,976 100 million
Operating profit¥547 100 million
Ordinary income¥644 100 million
Net income¥296 100 million
Operating profit margin18.4% actual for the fiscal year ended March 2026; 16.4% plan for the fiscal year ending March 2027 (down 2.0 percentage points year on year)
Full-year earnings forecastNet Sales ¥2,980 100 million / Operating profit ¥490 100 million / Ordinary income ¥490 100 million / Profit attributable to owners of the parent ¥310 100 million
Segment resultsDigital Entertainment (HDG) Operating profit Fiscal year ended March 2024 ¥-81 100 million / Fiscal year ending March 2025 ¥33 100 million / Fiscal year ending March 2026 ¥141 100 million / SD business Operating profit margin Fiscal year ended March 2024 14% / Fiscal year ending March 2025 11% / Fiscal year ending March 2026 25% / Rights and Properties business Operating profit Fiscal year ended March 2024 5,658 million yen / Fiscal year ending March 2025 6,067 million yen / Fiscal year ending March 2026 11,237 million yen / Publishing Business Overseas revenue Fiscal year ended March 2024 2,148 million yen / Fiscal year ending March 2025 2,353 million yen / Fiscal year ending March 2026 2,912 million yen / Amusement Business Overseas revenue Fiscal year ended March 2024 109 million yen / Fiscal year ending March 2025 619 million yen / Fiscal year ending March 2026 1,496 million yen / Overseas franchised locations Fiscal year ended March 2024 1 / Fiscal year ending March 2025 4 / Fiscal year ending March 2026 8
Key KPIsCatalog title unit sales 1,466 10,000 units, 1,684 10,000 units, 1,910 10,000 units / SD business operating margin 14 %, 11 %, 25 % / Publishing business overseas sales 2,148 million yen, 2,353 million yen, 2,912 million yen / Overseas franchised AM locations 1 Location, 4 Location, 8 Location
Number of stores and locationsThe number of overseas franchised AM locations was 1 in the fiscal year ended March 2024, 4 in the fiscal year ended March 2025 and 8 in the fiscal year ended March 2026. The number of openings and closures during each period was Not disclosed.
Medium-term management plan targetsFiscal year ending March 2027 consolidated operating margin 15% / ROE 10% or higher / Strategic investment budget ¥80 billion–¥100 billion / Comparison with actual results The operating margin was 18.4% in the fiscal year ended March 2026
Financial targetsROE Target of at least 10% / Consolidated operating margin Target consolidated operating margin of 15% for the fiscal year ending March 2027
Annual DividendFiscal year ending March 2026 Annual ¥129 (before the stock split) / ¥43 (after the stock split) / Interim ¥54 (before the stock split) / ¥18 (after the stock split) / End of period ¥75 (before the stock split) / ¥25 (after the stock split) / Forecast for the fiscal year ending March 2027 Annual ¥129 (before the stock split) / ¥43 (after the stock split) / Interim ¥54 (before the stock split) / ¥18 (after the stock split) / End of period ¥75 (before the stock split) / ¥25 (after the stock split)
Payout ratioFiscal year ending March 2026 Not disclosed / Fiscal year ending March 2027 Not disclosed / Total payout ratio Fiscal year ending March 2026 52.3% / Fiscal year ending March 2027 Assumed at 50.0%
New initiativesAbolish the domestic business-unit structure and introduce a creative studio structure, Establish a global strategy function encompassing the global marketing strategy organization and data-related organizations, Launch the pet-goods brand “SQEX PETs”, Develop and implement an AI-powered tool to streamline the “typesetting instructions” process in manga production, Introduce a performance-linked bonus system, Establish a human resources development committee, Expand training for new employees and introduce a rotation program
Items this document does not state (15)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The Company explained that steady profit growth was achieved as existing businesses performed solidly and significant licensing revenue contributed to earnings. It also stated that profitability in the SD business improved substantially through cost optimization for operating titles, diversification of payment methods and a review of the title portfolio.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Progress Report on the Medium-Term Management Plan (Fiscal Years Ending March 2025 to March 2027) | SQUARE ENIX HOLDINGS CO.,LTD. (9684) timely disclosure | Komori