Square Enix has published its end-of-year fiscal report, confirming yesterday's warnings of a ¥12 billion ($148m/£90.6m) loss for the financial year ending March 31 2011. In addition, the report reveals revenues are down 34.8 per cent.
The publisher ended its financial year with net sales of ¥125.27 billion ($1.56bn/€1.09bn). Operating income was down 74.1 per cent, at ¥7.33 billion ($91.0m/€63.7m), while recurring income also took a significant hit, falling 80.6 per cent to ¥5.4 billion (£41.2m / $67m).
"Our group experienced significantly lower sales and profit during the fiscal year mainly due to weak performance of console game titles released during the year as well as the impact of a continued delay in billing for [Final Fantasy XIV], which was newly launched during the year," said president Yoichi Wada in a press release.
"Further, under a rapidly changing operating environment and more prudent estimates of future cash flows, the company wrote down goodwill (approximately ¥8.8 billion/$109.3m/€76.5m). Project development cancellation and related losses (approximately ¥4.5 billion/$55.9m/€39.1m) as well as losses caused by natural disaster (approximately ¥0.6 billion/$7.5m/€5.2m) were also factors in the recording of total extraordinary losses of ¥16.0 billion ($198.7m/€139.0m)."
"In the fiscal year ending March 31, 2012, we are very focused on the group's key strategic initiatives of globalisation, becoming 'network centric', and strengthening our own IPs as we work to generate a substantial earnings recovery from the fiscal year ending March 31, 2013 and beyond."
Square Enix cited the Japan-exclusive Dragon Quest Monsters: Joker 2 and IO Interactive's Kane & Lynch 2: Dog Days as the only million sellers during the period.