A statue of Nintendo’s video game character Mario is on display at the Nintendo Game Front showroom in Tokyo, Japan.
Kiyoshi Ota | Bloomberg | Getty Images
Nintendo Inc. reported better-than-expected sales and profits for its fiscal second quarter on Tuesday, as it continues to benefit from the “Super Mario Bros. Movie” and flagship Zelda game released this year.
Here’s how Nintendo performed in its fiscal second quarter compared to LSEG estimates:
- Revenue: 334.9 billion Japanese yen ($2.2 billion) versus 317.3 billion yen expected.
- Net profit: 90.3 billion yen versus 75.7 billion yen expected
Nintendo’s revenues fell 4% year-over-year and its profits fell 19%.
In the previous quarter, the company benefited from the success of the “Super Mario Bros. Movie” and the highly anticipated May release of the game “The Legend of Zelda: Tears of the Kingdom,” which drove people to buy the Japanese game. the giant’s flagship Switch game console. This appears to have continued into the September quarter.
For the six-month period from April to September, Nintendo reported a 21.2% increase in revenue to 796.2 billion yen, while its net profit jumped 17.7% to 271.2 billion yen.
“Sales in the first half of the fiscal year were the strongest since the launch of Nintendo Switch,” Nintendo said in a statement, citing increased sales in its video game business and the depreciation of the Japanese yen.
Building on this situation, Nintendo has raised its forecasts for the whole year. The company said its net revenue for its fiscal year, which ends in March 2024, will be 1.58 trillion yen, up from a previous forecast of 1.45 trillion. Nintendo reported net profit of 420 billion yen on Tuesday, up from previous forecasts of 340 billion yen.
Investors are worried that sales of the Nintendo Switch, now more than six years old, have peaked. Many have asked the company to release a new console. However, Nintendo’s results highlight how its recognizable characters can continue to drive Switch sales.
The Japanese video game giant said it sold 6.84 million Switch consoles between April and September, an increase of 2.4% year-on-year. Nintendo has maintained its sales forecast of 15 million Switch consoles for the current fiscal year.
Nintendo sold 19.5 million units of “The Legend of Zelda: Tears of the Kingdom” in the first six months of its fiscal year. “Mario Kart 8 Deluxe,” released for Switch in 2017, was Nintendo’s second most popular game during that period, helped by the success of the Mario movie, which grossed more than $1 billion at the box office since its release in April. . The film was produced in collaboration with Universal Studios.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
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