Third-quarter earnings report shows robust sales, but a decline in profits.
Nintendo recently released their financial results for the first three quarters of fiscal year 2009, and along with revealing lifetime sales data for some of their key titles, also detailed a drop in profits year-on-year.
In a statement addressing their financial results for the three quarters ending Dec. 31, 2009, Nintendo stated that their "net sales, operating income, ordinary income, and net income represented the third best corresponding performances in company history, but they all saw a decline from the results of the prior year." Their rationale for the decrease was "year-on-year decreases in Wii hardware and Nintendo DS software sales, a price cut for Wii hardware, and the significant impact of a stronger yen."
Nintendo's net sales declined year-on-year, dropping 23.1 percent to ¥1,182.1 billion ($13.09 billion). Nintendo also reported profits of ¥192.6 billion ($2.1 billion), a 9.4 percent drop year-on-year. However, the company maintained their fiscal year forecast, predicting a net profit of ¥230 billion ($2.55 billion). This would be its first year-on-year profit decline since the introduction of the Wii console in 2006.
NINTENDO ANNOUNCES FINANCIAL RESULTS FOR THE NINE-MONTHS ENDING DEC. 31, 2009
January 27, 2010 - On January 28, 2009 (Japan time), Nintendo Co., Ltd. reported financial results for the first three fiscal quarters and earnings for the period ending Dec. 31, 2009, and left unchanged prior forecasts for full year global sales and profits.
The nine month figures for net sales, operating income, ordinary income, and net income represented the third best corresponding performances in company history, but they all saw a decline from the results of the prior year. The net sales and operating income declines in comparison to the record-breaking previous year primarily stem from year-on-year decreases in Wii hardware and Nintendo DS software sales, a price cut for Wii hardware, and the significant impact of a stronger yen.
The company also updated life-to-date worldwide unit shipments for its two category-leading brands. Cumulative shipments of Wii hardware now exceed 67 million, along with nearly 510 million software units. For the Nintendo DS franchise that includes Nintendo DS, Nintendo DS Lite, and Nintendo DSi, the corresponding lifetime totals now stand at over 125 million portable hardware systems, and over 688 million software units.
Consolidated financial results for April-December 2009 in millions of yen:
Net Sales * Operating Income * Ordinary Income * Net Income
Apr-Dec, 2009 1,182,177 * 296,656 * 314,511 * 192,601
Apr-Dec, 2008 1,536,348 * 501,330 * 352,488 * 212,524
% Change -23.1% * -40.8% * -10.8% * -9.4%
Unit sales in millions:
Apr-Dec 08 * Apr-Dec 09 * LTD * Forecast Apr 09-Mar 10
Total Hardware 25.62 * 23.35 * 125.13 * 30
Japan 3.29 * 3.52 * 29.92
The Americas 9.54 * 10.53 * 44.99
Other 12.79 * 9.30 * 50.23
Total Software 163.78 * 121.38 * 688.29 * 150
Japan 27.11 * 25.04 * 171.99
The Americas 64.55 * 56.95 * 261.90
Other 72.11 * 39.38 * 254.41
Total Hardware 20.52 * 17.05 * 67.45 * 20
Japan 1.89 * 1.76 * 9.72
The Americas 9.80 * 8.48 * 32.02
Other 8.83 * 6.81 * 25.71
Total Software 163.78 * 156.64 * 509.66 * 192*
Japan 11.04 * 12.48 * 46.57
The Americas 90.29 * 82.84 * 275.84
Other 62.46 * 61.32 * 187.24