By Kosaku Narioka
Nintendo reported its first-half results on Tuesday. Here’s what you need to know.
NET PROFIT: Nintendo said net profit increased 18% from a year earlier to 271.30 billion yen ($1.81 billion) for the six months ended Sept. 30. That beat the estimate of Y253.50 billion in a poll of analysts by Visible Alpha.
REVENUE: Nintendo’s first-half revenue climbed 21% from a year earlier to Y796.24 billion, also exceeding the estimate of Y779.01 billion in the Visible Alpha poll.
WHAT WE WATCHED:
–IP REVENUE: First-half revenue from mobile and intellectual property-related income more than doubled to Y55.0 billion from Y23.5 billion in the year-earlier period, thanks partly to the success of “The Super Mario Bros. Movie” since its release in April.
–SOFTWARE: Nintendo raised its forecast for Switch software sales for the fiscal year ending March 2024, projecting it would sell 185.0 million copies, up from its previous projection of 180.0 million. It sold 97.1 million copies in its first half, including 19.5 million copies of “The Legend of Zelda: Tears of the Kingdom” since the title’s release in May.
–INTEREST INCOME: First-half interest income nearly tripled from a year earlier to Y23.46 billion, helping its bottom line, thanks to higher interest rates abroad.
–MARGIN: First-half operating-profit margin improved to 35.2% from 33.5% in the year-earlier period, as selling, general and administrative expenses increased more slowly than revenue.
Write to Kosaku Narioka at [email protected]
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