Nintendo has announced its first-half results for the fiscal year, and the numbers are impressive. The company reported a net profit of 271.30 billion yen ($1.81 billion), marking an 18% increase from the previous year. This surpassed the analyst estimate of Y253.50 billion.
In terms of revenue, Nintendo's first-half performance was equally remarkable. Revenue climbed 21% year-on-year to Y796.24 billion, surpassing the estimate of Y779.01 billion.
Here are the key highlights from Nintendo's first-half results:
Robust IP Revenue Boosts Earnings
One of the significant contributors to Nintendo's success was the substantial increase in revenue from mobile and intellectual property-related sources. In the first half, this revenue more than doubled to Y55.0 billion from Y23.5 billion in the same period last year. The success of "The Super Mario Bros. Movie," released in April, played a significant role in driving this growth.
Impressive Software Sales Projection
Nintendo has revised its forecast for Switch software sales for the fiscal year ending March 2024. The company now projects it will sell 185.0 million copies, up from the previous projection of 180.0 million. In the first half alone, Nintendo sold 97.1 million copies, including a notable 19.5 million copies of "The Legend of Zelda: Tears of the Kingdom," released in May.
Boost in Interest Income
Nintendo's first-half interest income nearly tripled compared to the previous year, reaching Y23.46 billion. This increase significantly contributed to the company's bottom line, benefiting from higher interest rates abroad.
Strong Operating-Profit Margin
With a first-half operating-profit margin of 35.2%, Nintendo demonstrated an improvement compared to the 33.5% margin in the previous year. This improvement can be attributed to the slower growth of selling, general, and administrative expenses compared to revenue.
Overall, Nintendo's first-half results highlight the company's resilience and continued success in the gaming industry. With robust earnings and impressive sales projections, Nintendo is poised for a strong future.
