Nintendo has announced a significant increase in its first-half net profit, leading the company to raise its fiscal-year earnings forecasts. The rise in profit can be attributed to the success of a Super Mario film, as well as stronger sales of the Switch console and software.
Impressive Financial Results
For the six months ended September 30, Nintendo’s net profit rose by 18% to 271.30 billion yen ($1.81 billion), surpassing the estimate of Y253.50 billion by Visible Alpha. The company also reported a 21% increase in first-half revenue, reaching Y796.24 billion.
Increased Forecasts
Nintendo has decided to revise its forecast for Switch software sales for the fiscal year ending March 2024. They now expect to sell 185.0 million copies, up from their initial projection of 180.0 million. However, their expectation for console sales remains unchanged at 15.0 million units.
Success of “The Super Mario Bros. Movie”
The revenue boost can be attributed to various factors, including stronger sales of consoles and software, as well as the success of “The Super Mario Bros. Movie.” Additionally, a weaker yen also contributed to the company’s growth.
Strong Sales Performance
Nintendo sold a total of 6.8 million Switch consoles in the first half, up from 6.7 million units sold in the same period last year. They also witnessed an increase in Switch software sales, with 97.1 million copies sold compared to 95.4 million a year earlier. Furthermore, “The Legend of Zelda: Tears of the Kingdom” sold an impressive 19.5 million copies since its release in May.
Updated Projections
Nintendo has updated its projections for this fiscal year, announcing that it expects a smaller decline in net profit than initially anticipated. They now project a 3.0% decrease, amounting to Y420.00 billion. As for revenue, the company forecasts a 1.4% decrease, reaching Y1.580 trillion.
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