Nintendo financial results – nine months ended December 31, 2017
It’s that time of year again. Companies are beginning to report their results for the latest financial period, including Nintendo. The Big N shared its results for the nine month period ended December 31, 2017.
– Switch hardware total: 14.86 million
– Switch software total: 52.57 million
– 3DS hardware total: 71.99 million
– 3DS software total: 360.50 million
– Wii U hardware total: 13.56 million
– Wii U software total: 101.65 million
– 7.2 million Switch units sold between October and December
– Nintendo expects to sell 15 million units between April 2017 and March 2018, up from 14 million
Switch Hardware shipments WW LTD:
Japan – 3.72 million
The Americas – 5.94 million
Other – 5.2 million
Switch Hardware shipments WW LTD by %:
Japan – 25%
The Americas – 40%
Other – 35%
Smart Device, IP related income:
¥11,176 million (~$102.9 million) for the quarter/
¥29,101 million (~$268 million) FYTD
Nintendo’s earnings share from Pokemon GO:
(Share of profit of entities accounted for using equity method:)
¥2,217 million (~$20.4 million) for the quarter/
¥8,646 million (~$79.6 million) FYTD
– Net Sales: ¥857,012 million (~$7.89 billion), 175.5% increase YoY
– Operating Income: ¥156,462 million (~$1.44 billion) 494.6% increase YoY
– Profit: ¥135,165 million (~$1.24 billion) 31.3% increase YoY
Nintendo has provided the following statement about its performance:
For the nine months ended December 31, 2017, the Nintendo Switch hardware sold well following the launch and sales volume rose substantially during the holiday season. For the Nintendo Switch software, SUPER MARIO ODYSSEY was released in October and has been a big hit, with global sales reaching 9.07 million units. Mario Kart 8 Deluxe, released in April, has sold 7.33 million units, and Splatoon 2, released in July, has sold 4.91 million units, bringing to 8 the total number of million-seller titles for this fiscal year including the titles of other software publishers. The result is that hardware sales during this period totaled 12.13 million units, and software sales volume totaled 47.10 million units.
Nintendo 3DS hardware sales did not weaken after the launch of Nintendo Switch. In fact, sales grew during the holiday season in the US. Sales volume was firm in other regions as well, with the total reaching 5.86 million units (9% decrease on a year-on-year basis).
For the Nintendo 3DS software, sales of Pokémon Ultra Sun and Pokémon Ultra Moon, released in November, have grown to 7.17 million units, but overall software sales declined to 31.25 million units (33% decrease on a year-on-year basis).
The Super Nintendo Entertainment System: Super NES Classic Edition, launched globally during September and October, proved to be a hit. We also expanded our amiibo lineup with new amiibo released simultaneously with software titles, pushing sales to approximately 9.30 million units for figure-type and approximately 5.00 million units for card-type.
In our download business, brisk download sales for Nintendo Switch helped push total download sales up to 43.1 billion yen (87% increase on a year-on-year basis).In our smart-device business, consumers not only continued to enjoy Super Mario Run and Fire Emblem Heroes, which became available for download during the previous fiscal year, but also had fun with Animal Crossing: Pocket Camp, released globally during October and November. Smart devices and IP related income were up to 29.1 billion yen (172% increase on a year-on-year basis).
Total sales reached 857.0 billion yen (of which overseas sales were 639.9 billion yen or 74.7% of the total sales). Operating profit came to 156.4 billion yen, ordinary profit was 194.5 billion yen, and profit attributable to owners of parent totaled 135.1 billion yen.
Major software titles due out for Nintendo Switch include Bayonetta 2, set for release in February, and Kirby Star Allies, coming in March, as well as major titles planned by other software publishers. We aim to broaden the platform’s user base by continuing to introduce compelling new software in addition to the stable of popular titles that already have been released.
For Nintendo 3DS, Detective Pikachu is due out in March. We will also work to leverage our installed hardware base to expand sales of evergreen titles.
In our smart-device business, we will focus on operations that encourage more consumers to continue to enjoy playing the applications that they have downloaded
Note that Nintendo will be holding a strategy briefing tonight. We’ll report on any news that happens to come from that.
