Square Enix Holdings Co. reported a 7.7% drop in net income to 24.7 billion yen ($166 million) for the nine months through December, as declining mobile game revenue offset gains in its arcade and licensing businesses.
Sales fell 3.5% to 245.8 billion yen from a year earlier, the Tokyo-based game maker said Wednesday. The company’s core digital entertainment segment saw revenue decline 10.7% to 160.4 billion yen, mainly due to underwhelming performance of smartphone games and lower royalty income.
The publisher of Final Fantasy saw bright spots in its massively multiplayer online games, with the latest expansion pack for Final Fantasy XIV driving growth. Dragon Quest III HD-2D Remake, released in November, exceeded sales targets, helping to offset development costs.
The company maintained its forecast for the fiscal year ending March, projecting net income of 28 billion yen on sales of 310 billion yen. While mobile gaming continues to face headwinds, Square Enix’s amusement and licensing divisions posted double-digit growth, with the latter surging 54.9% in operating profit on strong character merchandise sales.
The publisher’s publishing unit declined as sales normalized following last year’s hit “The Apothecary Diaries” manga series.
