Nintendo Financial Results – Three Months Ended June 30th, 2018 (April 1st – June 30th)

31 July 2018 Lite_Agent Nintendo Financial Results

Today, the Nintendo financial results for the Three Months Ended June 30th, 2018 were revealed, and as expected, they’re pretty good. The company is riding on the success of the Nintendo Switch, with sales significantly up compared to the same period last year (except Nintendo Switch Hardware sales, ironically).

Nintendo Financial Results – Raw Data

Let’s start with some raw data:

Net Sales (FY): 168 157 million Yen (1.295 billion € / 1.514 billion $ / 1.153 billion £), an increase of 9.1% over the same period last year (164 069 million Yen, an increase of 148.6% over the same period during the previous Fiscal Year);
Net Sales (Q1): 168 157 million Yen (1.295 billion € / 1.514 billion $ / 1.153 billion £)
Operating profit (FY): 30 535 million Yen (235 million € / 274 million $ / 209 million £), an increase of 88.4% over the same period last year (16 208 million Yen);
Operating profit (Q1): 30 535 million Yen (235 million € / 274 million $ / 209 million £);
Ordinary profit (FY): 43 866 million Yen (338 million € / 395 million $ / 300 million £), an increase of 41.7% over the same period last year (30 960 million Yen);
Ordinary profit (Q1): 43 866 million Yen (338 million € / 395 million $ / 300 million £);
Profit attributable to owners of parent (FY): 30 600 million Yen ( 235 million € / 275 million $ / 209 million £), an increase of 43.9% over the same period last year (21 260 million Yen);
Profit attributable to owners of parent (Q1): 30 600 million Yen ( 235 million € / 275 million $ / 209 million £);
Digital sales (FY): 18.5 billion Yen / 142 million € / 166 million $ / 126 million £ (as opposed to 11 billion Yen / 84 million € / 99 million $ / 75 million £ during the same period last year);
Digital sales (Q1): 18.5 billion Yen / 142 million € / 166 million $ / 126 million £ (as opposed to 11 billion Yen / 84 million € / 99 million $ / 75 million £ during the same period last year).

The chart below shows the proportion of Software / Hardware / Other (accesories, amiibo) in sales, but also the geographical breakdown of sales. Sales are up in North America and “other”, and down in Europe and Japan, but the drop is pretty neglibile. Most of sales sales made outside Japan (a positive sign, as Europe + North America is a much bigger market than Japan onle). To be precise, sales topped 128.763 billion Yen outside Japan: that’s roughly 76.6% of total sales.

The Nintendo Switch once again account for most of sales this quarter (~76% of total sales) with the smart devices games making slightly more money (though it’s nowhere near what the dedicated game platforms bring: even the aging Nintendo 3DS alone made Nintendo more money, though the gap is closing fast). This particular area account for only 5.3% of total sales, with about 9.097 billion Yen in Q1.

Here’s data for Q1 specifically (all data is in million of Yen):

Dedicated video game platforms (Hardware, Software, Accessories) – Japan: 34 589 / North America: 69 124 / Europe: 33 789 / Other: 21 003 / Total: 158 517
- Nintendo 3DS – Japan: 2 146 / North America: 5 991 / Europe: 3 028 / Other: 536 / Total: 11 703
- Nintendo Switch – Japan: 28 910 / North America: 54 913 / Europe: 26 881 / Other: 18 882 / Total: 129 587
- Other (inc. amiibo, Virtual Console) – Japan: 3 533 / North America: 8 218 / Europe: 3 890 / Other: 1 584 / Total: 17 226
Smart devices, IP – Japan: 4 528 / North America: 3 531 / Europe: 626 / Other: 411 / Total: 9 097
Playing cards, others – Japan: 274 / North America: 265 / Europe: 1 / Total: 541
Total – Japan: 39 393 / North America: 72 920 / Europe: 34 428 / Other: 21 415 / Total: 168 157

And here’s some more data:

Hardware sales = 51.7% of total sales during Q1 2018-19;
First-party games = 82.9% of total Software sales during Q1 2018-19;
Digital sales = 24.2% of total Software sale during Q1 2018-19.

Nintendo Financial Results – Hardware / Software Sales

Nintendo 3DS: 360 000 units for Fiscal Year / 360 000 units for Q1 2018-19 / 72.89 million units since launch;
Nintendo 3DS (Software): 2.95 million units for Fiscal Year (9 new games launched in all regions*) / 2.95 million units during Q1 2018-19 / 367.840 million units since launch (1 678 games launched*)
Nintendo Switch: 1.88 million units for Fiscal Year / 1.88 million units for Q1 2018-19 / 19.67 million units since launch
Nintendo Switch: 17.96 million units for Fiscal Year (138 games launched in all regions*) / 17.96 million units units for Fiscal Year / 86.93 million units since launch (436 games launched*)

* games released in more than one region are counted several times (example: 1 game in 3 regions: counted 3 times). Only include games released at retail.

Here’s some details about Nintendo 3DS sales:

New Nintendo 3DS XL – 12 070 000 (+ 60 000 units for Fiscal Year, 60 000 units for Q1 2018-19)
Nintendo 2DS – 9 520 000 (+ 110 000 units for Fiscal Year, 110 000 units for Q1 2018-19)
New Nintendo 2DS XL — 2.91 million units (+200 000 units for Fiscal Year, 200 000 units for Q1 2018-19)

Nintendo Financial Results – Forecast comparison

Here’s Nintendo’s forecast for the current Fiscal Year:

Net sales: 1 200 billion Yen (+ 145 billion Yen compared to FY 2017-18)
Net sales (actual result as of June 30th 2018): 168 157 million Yen (1 038 billion Yen left)
Operating profit: 225 billion Yen (+ 48 billion Yen compared to FY 2017-18)
Operating profit (actual result as of June 30th 2018): 43 866 million Yen (182 billion Yen left)
Ordinary profit: 230 billion Yen (+ 31 billion Yen compared to FY 2017-18)
Ordinary profit (actual result as of June 30th 2018): 43 866 million Yen (187 billion Yen left)
Net profit attributable to owners of parent: 165 billion Yen (+26 billion Yen compared to FY 2017-18)
Net profit attributable to owners of parent (actual result as of June 30th 2018): 30 600 million Yen (135 billion Yen left)

As for the Nintendo 3DS, and the Nintendo Switch specifically:

Nintendo 3DS: 4 million units (- 2.4 million units compared to FY 2017-18)
Nintendo 3DS (actual result as of June 30th 2018): 360 000 units (3 640 000 units left)
Nintendo 3DS Software: 16 million units (-19.64 million units compared to FY 2017-18)
Nintendo 3DS Software (actual result as of June 30th 2018): 2.95 million units (13.05 million units left)
Nintendo Switch: 20 million units (+5.05 million units compared to FY 2017-18)
Nintendo Switch (actual result as of June 30th 2018): 1.88 million units (18.12 million units left)
Nintendo Switch Software: 100 million units (+37.49 million units compared to FY 2017-18)
Nintendo Switch Software (actual result as of June 30th 2018): 17.96 million units (82.04 million units left)

Nintendo Financial Results – Nintendo comments

Nintendo explain that both Donkey Kong Country: Tropical Freeze (released in May) and Mario Tennis Aces (released on June) are off to a great start, with 1.40 million units and 1.38 million units sold respectively. For Nintendo Labo (released in April), Nintendo mention that it was “very well received by consumers who purchased it”, and that overall sales have already reached 1.39 million units. But it’s not just new releases that sold well: popular games released during the previous Fiscal Year also enjoyed strong sales, with “steady growth”.

Unfortunately, Hardware sales are slightly down Year on Year, to 1.88 million units (-4%), but at least, Software sales are going really strong with 17.96 million units (+120.8%).

Meanwhile, the Nintendo 3DS is already in its 8th year on the market, and so it’s no big surprise sales would be down by 61.9% Year on Year, to 360 000 units. Even Software sales are significantly down: -49.6%, to 2.95 million units.

As for the re-launch of the Nintendo Entertainment System: NES Classic Edition, it was a great success with no less than 1.26 million units sold. It looks like there was still a ton of pent up demand following the early discontinuation of the mini console last year.

On the digital front, Nintendo see major growth with +68% Year on Year (18.5 billion Yen), thanks to strong sales of downloadable versions of retail games and DLC. The smart device business is also going well: Fire Emblem Heroes, Super Mario Run, and Animal Crossing: Pocket Camp are still going strong, but no particular comment from Nintendo about them. Sales are very slightly up Year on Year (+0.4%).

Nintendo Financial Results – Forecast

Nintendo reveal that ever since E3, in June, Nintendo Switch Hardware sales have been trending upwards. Also, digital and Software sales have also been doing great, ahead of the holiday season.

For the rest of the year, Nintendo list the following games:

Captain Toad: Treasure Tracker (already available)
Nintendo Labo Toy-Con 03: Vehicle Kit (out in September)
Super Mario Party (out in October)
Pokémon: Let’s Go, Pikachu! / Let’s Go, Eevee! (out in November)
Super Smash Bros. Ultimate (out in December)

Nintendo also mention “several key titles” from third-party publishers.

Of course, let’s not forget about the launch of Nintendo Switch Online in September, that will expand the online functionalities of the console, leading to a futher accecleration of the “already great momentum” of the Nintendoi Switch.

On Nintendo 3DS, no change: the focus is still on leveraging the platform’s rich Software library and large install base to further increase sales of evergreen titles.

On the mobile friont, nothing new: Dragalia Lost is releasing this Summer, Mario Kart Tour is coming by the end of the Fiscal Year, and the company is going to continue providing new contents and events for the games already available.

Nintendo hasn’t announced a change to the financial forecast for the current Fiscal Year.

Source: Nintendo / Nintendo