Written by Kosaku Narioka
Nintendo has revised its fiscal-year earnings forecasts upward following a rise in net profit for the first half of the year. Key drivers of this success include the popularity of a Super Mario film, as well as stronger sales of the Switch console and software.
For the six months ended September 30, the Japanese videogame maker reported a net profit of ¥271.30 billion ($1.81 billion), representing an 18% increase compared to the same period last year. This exceeded analysts’ estimates of ¥253.50 billion.
While maintaining its expectations for console sales, Nintendo has raised its forecast for Switch software sales for the fiscal year ending March 2024. The company now expects to sell 185.0 million copies of Switch software, up from the previous projection of 180.0 million.
Nintendo also reported a 21% increase in revenue for the first half of the year, reaching ¥796.24 billion. This growth can be attributed to higher sales of consoles and software, a weaker yen, and the success of “The Super Mario Bros. Movie”.
Looking ahead, Nintendo projects a modest 3.0% decline in net profit to ¥420.00 billion for the current fiscal year, compared to a previously predicted 21% drop. The company also expects a 1.4% decrease in revenue to ¥1.580 trillion, revising its previous forecast of a 9.5% fall.
Ultimately, Nintendo’s strong first-half performance sets a favorable foundation for its future financial outlook.