Nintendo Announces First-Quarter Financial Results

Nintendo Co., Ltd. today announced consolidated first-quarter global financial results for the three-month period between April and June 2010.

Consolidated financial results for April-June 2010 in millions of yen:

April-June 2010 April-June 2009 % change
Net Sales 188,646 253,498 -25.6
Operating Income 23,342 40,401 -42.2
Ordinary Income -46,055 64,824 —
Net Income -25,216 42,316 —
To view an English translation of the complete financial results please visit http://www.nintendo.co.jp/ir/en/index.html

For the first three months of this fiscal year, the company reported year-on-year increased unit sales for Wii hardware, but reported declines for Wii™ software, Nintendo DS™ hardware and software. In addition, the rise in the value of the Japanese yen in comparison to the corresponding three months a year ago had a significant negative impact to net sales when reported in the Japanese yen.

Separately, the results reported for ordinary and net losses for the June 2010 quarter were mainly influenced by foreign exchange losses of 70.5 billion yen, caused by the increased strength of the yen during the three month period. As explained in the financial report, Nintendo possesses a significant amount of assets such as cash, deposits and accounts receivable-trade in the U.S. dollar, euro and other non-Japanese yen currencies. Even when the values of these assets remain nearly constant in their original currencies, Nintendo Co., Ltd., as a Japanese listed company, reevaluates them in Japanese yen when it reports its results every three months. A higher appreciation of yen in comparison to how the yen was traded at the closing of the preceding annual fiscal year would result in foreign exchange losses in the non-operating expense section of Nintendo’s income statements. Between the end of March and the end of June this year, the Japanese yen became significantly stronger, by 4.56 yen against the U.S. dollar and by 17.11 yen against euro.

Other highlights announced by Nintendo today include the following cumulative shipment figures from launch through the end of June 2010:

• Wii hardware: 73.97 million units worldwide
• Wii software: 573.00 million units worldwide
• Nintendo DS hardware: 132.04 million units worldwide
• Nintendo DS software: 740.93 million units worldwide

The company maintained its previous full year forecasts for worldwide unit sales.

Unit sales forecast for April 2010-March 2011 (unchanged from previous forecast):

• Wii hardware: 18 million worldwide
• Wii software: 165 million worldwide
• Nintendo DS hardware: 30 million worldwide
• Nintendo DS software: 150 million worldwide

For more information about Nintendo products in general, please visit Nintendo.com.

Source: Nintendo PR