Square Enix Reports CY Q2 2023 Earnings - MMO Revenue Drops 22% While Profit Tanks 65%
Square Enix reported their calender year Q2 2023 (April-June) Final Fantasy XIV: Dawntrail launches next year (Summer 2024).
The dollar value of MMO revenue was ~$77.6m USD for the quarter (~$25.87m USD per month), the lowest it's been in 2 years. MMO revenue is highly valued by investors as it tends to be recurring in nature and also much higher margin. This sales figure is actually much worse than face value as the Japanese Yen depreciated significantly in the last year, which benefited Square Enix's USD and EUR sales.
These weak numbers will likely pressure shares on Japanese trading when the market opens monday morning. On a more positive note though, Square Enix did not adjust their full year forecasts despite a weak first fiscal Q1, which means the company is optimistic they can still hit their full year profit and revenue targets (It's the second quarter on a calendar basis, but 1st quarter by Square Enix's ing Fiscal Year).
