- Nintendo Co Ltd (OTC:NTDOY) reported a net sales decline of 6% year-on-year to ¥1.32 trillion for the nine months ended December 31, 2021. Dedicated video game platform sales declined 6.1% Y/Y to ¥1.28 trillion. Mobile, IP-related income sales reduced 5.2% Y/Y to ¥39.8 billion. Playing cards, etc., sales rose 57.8% Y/Y to ¥2.1 billion.
- Hardware: Unit sales for the entire Nintendo Switch family of systems declined by 21.4% Y/Y to 18.95 million units. Nintendo Switch sales decreased 29.7% Y/Y to 11.79 million units. Nintendo Switch Lite sales reduced 56.8% Y/Y to 3.17 million units.
- Software: Software sales rose 1.8% Y/Y to 179.29 million units. Digital sales declined 0.4% Y/Y to ¥255 billion.
- Profit: The gross profit decreased 4.5% Y/Y to ¥734 billion due to a decline in net sales. The gross margin expanded by 90 bps to 55.6% due to the weak yen's exchange rate effect.
- The operating profit declined 9.3% Y/Y to ¥472.5 billion due to the gross profit decline and higher SG&A. The operating margin contracted 130 bps to 35.8%.
- The net profit reduced 2.5% Y/Y to ¥367.3 billion, and the net margin expanded 100 bps to 27.8%.
- Outlook: Nintendo raised its FY22 guidance of net sales of ¥1.65 trillion from ¥1.6 trillion, representing a 6.2% Y/Y decline.
- It sees FY22 Nintendo Switch Hardware of 23 million units (prior view 24 million units). It considers a Nintendo Switch Software of 220 million units (prior view 200 million units).
- The videogame maker raised the FY22 operating profit outlook to ¥560 billion from ¥520 billion, implying a 12.6% Y/Y decline and a net profit to ¥400 billion from ¥350 billion, signifying a 16.7% Y/Y decrease.
- Dividend: Nintendo sees the FY22 dividend of ¥1,700 (prior view ¥1,490) versus the prior-year dividend of ¥2,220. It held ¥1.1 trillion in cash and equivalents.
- Price Action: NTDOY closed higher by 1.15% at $62.66 on Wednesday.
Get all your news in one place.
100’s of premium titles.
One app.
Start reading
One app.
Get all your news in one place.
100’s of premium titles. One news app.
Nintendo Clocks 6% Net Sales Decline For Nine-Month Period
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member?
Sign in here
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Our Picks