Press Release: Nintendo Reports Third Quarter Financials For Fiscal Year 2009

Global Sales Mark 17% Growth Over Previous Year

Despite nearly unprecedented strength of the yen against major foreign currencies, Nintendo Co., Ltd. on Thursday (Japan time) reported 9-month (April to December 2008) global sales of 1,536 billion yen, an increase of nearly 17% over the same period in 2007, along with 501 billion yen of operating profits, up 27% from a year ago. This marks the fourth consecutive year that Nintendo Co., Ltd. has exceeded the previous results for the same nine month period. At the same time, recurring and net profits for the same nine month periods each declined about 18% due to 174 billion yen of foreign currency reevaluation losses from assets held in currencies other than Japanese yen (such as bank deposits without forward exchange contracts).

For the full fiscal year ending March 31, 2009, the company revised its unit sales forecast for the portable Nintendo DSâ„¢ system upward by 3% to 31.5 million globally, while the DS software forecast was lowered by 7% to 193 million. For the Wiiâ„¢ system, with softness in the Japanese consumer market, full year global unit sales estimates for both hardware and software were revised downward by 3%, to 26.5 million systems and 193 million games, respectively, in spite of the overall robust sales outside Japan.

As a result, and with the changes in the anticipated foreign currency exchange ratios, Nintendo Co., Ltd. has revised estimates for fiscal sales and profit projections for the full year ending March 31, 2009. However, the company remained on pace to set historic records for Net Sales and Operating Profit for the full 12 month period.

Other highlights announced by Nintendo today include the following cumulative shipment figures from launch through the end of December 2008:

Total LTD shipments of Nintendo DS hardware were 96.22 million worldwide, along with more than 533 million games.
Total LTD Wii shipments reached nearly 45 million worldwide, along with over 312 million games.
The LTD shipment of Wii Fitâ„¢ reached 14 million, and Mario Kartâ„¢ Wii reached 13.67 million.

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blah, blah, blah…..in fanboy terms Nintendo sold a crap load of hardware/software, and plan on selling more. Thoughts?

8 Responses to Press Release: Nintendo Reports Third Quarter Financials For Fiscal Year 2009

  1. Paolo says:

    IIC 501B Yen translate into 4.21B euros!!! Ungodly!!! O_o’

  2. elmer says:

    Sony shares appear flat, Nintendo shares appear up in Tokyo. It might not be long enough, but it looks like the market is at least reacting positively to Nintendo not making a loss like everyone else, while reacting neutrally to the fact that Sony’s losses aren’t quite as bad as they were expected. At least for a while the markets are being sensible about it. Or maybe I’m reading it wrongly.

    It’s entirely possible that like the crazies they are, when the British and American markets open in the morning Nintendo shares will be down because they view the gravy train as dipping and therefore dead, and Sony shares up because they’ve survived and are therefore immortal.

  3. —It’s entirely possible that like the crazies they are, when the British and American markets open in the morning Nintendo shares will be down because they view the gravy train as dipping and therefore dead, and Sony shares up because they’ve survived and are therefore immortal. —

    Never mind that Sony’s grim forecasts were for the fiscal year and not the fiscal quarter which Sony had reported. There is still three months left in the fiscal and it’s the slowest quarter of the year. If SCE can barely make a profit like $4 million during the Christmas quarter; then they are in really deep trouble when finances are in on near the end of April.

    Sony does have one major bright spot I noticed: PS3 software increased over 57% ; so at the very least there was some offset to making that profit.

    Bloomberg’s already saying that the Wii is not recession-proof even though Nintendo has never said that their company was recession-proof in the first place. I haven’t heard of any remodelling; and the rumors of job cuts in Europe looks really suspect to me at least. The big loss for Nintendo isn’t the 3% drop in hardware (which could be supply problems again); but the 3% drop in software for Wii and 7% drop for DS due to weakness in the console market in Japan; since software makes more profit than hardware does even when the hardware is making a profit.

    While Nintendo fanboys will love these numbers; I’m sure Mr. Iwata isn’t too happy about down ticking numbers for the first time in a long while and I’m sure he’s PISSED that the yen is so strong because they could have easily made more profit this quarter.

    I cannot wait for the last week of April when the fiscal year finances for both companies are issued because this will tell us: Where do these two companies go from here..

  4. deepthought says:

    ugh- weaker than i hoped. outside forces are really a problem…

    least nintendo is being more mature than microsoft, who refused to provide guidance.

    nice summary here jake. me likey numbers.

  5. Oh boy! Look who gets first chance to act like they know what they are talking about…From GoNintendo.com:

    “Today’s revision suggests that the roaring pace of Wii growth that we’ve seen until now may be over. The numbers also imply that we are going to see a sudden collapse in the fourth quarter from record margins to some of the thinnest margins Nintendo has experienced for three years. they know something big has gone wrong, and that people are not buying the machines.” – Hiroshi Kamide, KBC Financial Products

    I’m not going to bother fisking that (since I have already done so on my Livejournal); but you all can comment on it.

  6. elmer says:

    I take that challenge

    I’ve actually heard Japanese analysts declare the Wii ride is over several times now. Nintendo’s stock take a hit every time and reality predictably bears out the polar opposite of the analysts’ overpriced prognostications. Admittedly there certainly has been a downturn in Wii software and hardware sales in Japan. I blame the crippling non-release of any 3rd party games whatsoever, but then, I’m not a professional like he is… Interestingly Hiroshi Kamide is making his predictions in the face of Monster Hunter. This will be a laugh.

    I can’t wait to see him get a bonus, just before KBC Financial Products declares bankruptcy, stating that the hard work their analysts did this year entitles them to their compensation, just before asking the tax payers for a bail out as they’ve effectively become a bank, which would be contributed to in no small part by rich companies like Nintendo (I assume I’m way off having no knowledge of KBC).

  7. Oh; and Hiroshi has to “ellaborte” on the previous statement too…

    “It’s big in the respect that Wii demand is not being seen at all in Japan, and that they felt they had to reduce annual guidance. Why didn’t they just pre-plan and cater to markets where there was demand?” – Hiroshi Kamide of KBC Financial Products

    Why not just say that from the start and save me the trouble of sounding unhinged in the process? I swear to god; Kamide is intentionally trying to piss me off somehow even though 99.9% chance he doesn’t even know I exist. At least this statement makes sense and even makes sense compared to Michael Pachter usual “Nintendo diverts shipments to Europe due to strong dollar” nonsense.

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