Nintendo Reports Strong Sales and Profit for Second Quarter
Nintendo has announced better-than-expected sales and profit for its fiscal second quarter, buoyed by the success of the “Super Mario Bros. Movie” and the release of the flagship Zelda game this year. The company’s revenue reached 334.9 billion Japanese yen ($2.2 billion), surpassing the expected 317.3 billion yen. Net profit also exceeded expectations, hitting 90.3 billion yen compared to the estimated 75.7 billion yen.
Although Nintendo’s revenue experienced a 4% year-on-year decline and profit dipped 19%, the success of the “Super Mario Bros. Movie” and the highly anticipated “The Legend of Zelda: Tears of the Kingdom” game contributed to strong sales in the September quarter. For the six-month period from April to September, revenue increased by 21.2% year-on-year to 796.2 billion yen, with net profit rising 17.7% to 271.2 billion yen.
Nintendo attributed the strong performance to robust sales in its video game business and the depreciation of the Japanese yen. As a result, the company has increased its full-year forecasts. Net sales for the fiscal year, ending in March 2024, are now projected to be 1.58 trillion yen, up from the previous forecast of 1.45 trillion yen. Net profit is expected to reach 420 billion yen, compared to the previous forecast of 340 billion yen.
Although concerns have been raised regarding the saturation of the Nintendo Switch, which has been on the market for over six years, the latest results demonstrate the enduring appeal of Nintendo’s beloved characters in driving sales. Nintendo sold 6.84 million Switch consoles in the April to September period, an increase of 2.4% compared to the previous year. The company maintains its forecast of selling 15 million Switch consoles in the current fiscal year.
Notably, “The Legend of Zelda: Tears of the Kingdom” game sold 19.5 million units in the first half of Nintendo’s fiscal year. Additionally, “Mario Kart 8 Deluxe,” released on the Switch in 2017, emerged as the second-most popular game during the period, benefiting from the success of the Mario movie, which has grossed over $1 billion at the box office since its April release. The film was a collaboration with Universal Studios.
As Nintendo continues to capitalize on its iconic characters and their popularity, investors eagerly await any potential news regarding a new console. The company’s impressive results highlight the ongoing potential for growth within the gaming industry.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
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