Nintendo lifts revenue and profit forecasts, following strong Switch sales

0
131
By Kosaku Narioka

Nintendo Co. raised its fiscal-year revenue and net-profit forecasts, reflecting strong sales of its Switch game software, despite a shortage of chips that is affecting production of consoles.

The Japanese videogame company said Thursday that it sold 179.3 million Switch software copies in the nine months ended Dec. 31. That is up from 176.1 million a year earlier when the industry got a boost from stay-home trends caused by the Covid-19 pandemic. Nintendo said it expected to sell 220 million Switch software copies in the fiscal year ending March, up from the previous view of 200 million.

Nintendo said it expected fiscal-year revenue to decrease 6.2% to Y1.650 trillion ($14.41 billion), compared with the previous forecast of a 9.0% fall, while it expected net profit to drop 17% to Y400.00 billion, compared with the previous view of a 27% decrease.

Nintendo sold 18.95 million Switch consoles in the nine-month period, down from 24.1 million units a year earlier, amid a chip shortage. It expects to sell 23.0 million Switch consoles this fiscal year, down from the previous view of 24.0 million units.

Nintendo said its nine-month net profit fell 2.5% from a year earlier to Y367.39 billion. Third-quarter net profit was Y195.55 billion, given a net profit of Y171.83 billion in its first half, according to a Wall Street Journal calculation. The quarterly net profit beat the estimate of Y159.41 billion from a poll of analysts by Quick.

Nine-month revenue decreased 6.0% from a year earlier to Y1.320 trillion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com


This article was originally published by Marketwatch.com. Read the original article here.

Previous articleCapri stock soars after Michael Kors parent reports earnings beat and gives guidance ahead of expectations
Next articleDispatches from a Pandemic: The party’s over for AMC and GameStop investors — but the luckier meme-stock winners are now bracing for a massive tax bill

LEAVE A REPLY

Please enter your comment!
Please enter your name here