[Updated] Revisions to SQUARE ENIX Consolidated Results Forecasts

      [Updated] Revisions to SQUARE ENIX Consolidated Results Forecasts

PR Newswire

TOKYO, Oct. 31, 2012

TOKYO, Oct. 31, 2012 /PRNewswire/ --Based on the latest earnings results,
SQUARE ENIX HOLDINGS CO., LTD. (the "Company") today announces revisions to
its consolidated results forecasts previously disclosed on May 14, 2012.

(Logo:http://photos.prnewswire.com/prnh/20120604/LA17846LOGO)

1.Revision to Consolidated Results Forecasts for the Six-Month Period Ended
September 30, 2012
(April 1, 2012 through September 30, 2012)
(Millions of yen, rate of change in percents and per share data)
                                          Operating Ordinary Net     Earnings

                               Net sales  Income    Income   Income  (loss)

                                          (loss)    (loss)   (loss)  per share
Previous forecasts     (A)     76,000     0         0        0       0.00
Revised forecasts      (B)     61,000     (5,200)   (6,200)  (5,400) (46.93)
Change                 (B-A)   (15,000)   (5,200)   (6,200)  (5,400)
Rate of change         (%)     (19.7)     -         -        -
[Reference] Results for
six-month period ended         57.516     7,391     5,386    3,704   32.19
September 30, 2011



2.Revision to Consolidated Results Forecasts for the Fiscal Year Ending March
31, 2013
(April 1, 2012 through March 31, 2013)
(Millions of yen, rate of change in percents and per share data)
                                        Operating Ordinary Net      Earnings
                                                                    (loss)
                             Net sales  Income    Income   Income
                                                           (loss)   per share
                                        (loss)    (loss)
Previous forecasts  (A)      165,000    15,000    15,000   9,000    78.21
Revised forecasts   (B)      150,000    7,500      6,500  3,500    30.42
Change              (B-A)    (15,000)   (7,500)   (8,500)  (5,500)
Rate of change      (%)      (9.1)      (50.0)    (56.7)   (61.1)
[Reference] Results for the
fiscal year ended March 31,  127,896    10,713    10,297   6,060    52.66
2012

3.Factors Causing the Revision

(1)Six-Month Period Ended September 30, 2012

The Company made its consolidated results forecasts for the six-month period
ended September 30, 2012 on the assumption that releases of major online game
services would trigger one-time expenditures of capitalized development costs
in the content production account and increase of operation costs, which led
to forecasts of operating income, ordinary income and net income of 0
yenrespectively (those results in the previous fiscal year ended March 31,
2012 were 7,391 million yen, 5,386 million yen, and 3,704 million yen,
respectively). However, major arcade machines that were released during the
three month-period ended September 30, 2012 experienced sluggish sales. In
addition, sales of a major HD game title have been growing at a slower pace
than expected. Another negative factor in the Digital Entertainment business
segment is delays of social game service launch, which resulted in decrease of
service revenues and up-front expenditure of development costs.

Due to the above-mentioned factors, the Company has revised downward its
consolidated results forecasts of net sales, operating income, ordinary income
and net incomefor the six-month period ended September 30, 2012.

(2)Fiscal Year Ending March 31, 2013

The Company has also revised downward its consolidated results forecasts of
net sales, operating income, ordinary income and net incomefor the fiscal
year ending March 31, 2013. This revisions were made due to uncertainties of
the business environment, which is estimated as continuing in the second half
of the fiscal year, in addition to those factors mentioned in (1) above.

(3) Non-operating Expense (Foreign Exchange Loss)

As a result of the appreciation of the Japanese yen during the three-month
period ended September 30, 2012, the Company will record foreign exchange loss
of about 1.1 billion yenas non-operating expense for the six-month period
ended September 30, 2012 in relation to its overseas assets in foreign
currencies.

The forward-looking statements in this document are based upon the information
currently available, and necessarily include elements that are not entirely
predictable. Actual results may differ from the forward-looking statements in
this document.

All trademarks are the property of their respective owners.

Company:        SQUARE ENIX HOLDINGS CO., LTD.
                 (Code: 9684, Tokyo Stock Exchange)
Representative: Yoichi Wada, President and Representative Director
Contact:        Yosuke Matsuda, Director, tel (03) 5292-8000

Note: This document was updated from the announcement originally distributed
at 30-Oct-2012 04:53:00 AM (PDT).

SOURCE SQUARE ENIX HOLDINGS CO., LTD.
 
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