Nintendo is set to announce its third-quarter results tomorrow and there’s a number of things to look out for. Market Watch says that they expect Nintendo to announce aa hefty 13% rise in net profit to 130.37 billion yen. Nintendo made previously made Y115.78 billion net. Here’s what Market Watch says to look for tomorrow:
- First-half operating-profit margin improved to 35.2% from 33.5% in the year-earlier period, as selling, general and administrative expenses rose more slowly than revenue. Investors are focusing on any further improvement in margins as businesses around the world deal with high inflation.
- The company has projected it will sell 185.0 million copies of Switch software and 15.0 million Switch consoles for the fiscal year ending March. Nintendo expected fiscal-year revenue to decrease 1.4% to Y1.580 trillion and net profit will decline 3.0% to Y420.00 billion. Investors are focusing on any changes to the annual sales and earnings forecasts the management may make following the holiday shopping season.
- First-half revenue from mobile and intellectual property-related income more than doubled to Y55.0 billion from Y23.5 billion in the year-earlier period, thanks partly to the success of “The Super Mario Bros. Movie” since its release in April. Investors are paying attention to the pace of growth in intellectual property revenue.
They’ve had a couple of major helpers. TOTK had massive sales, and is a one in every 5/6 years event. Where’s the next Switch game that will have numbers anything approaching that?
But the real major boost to Nintendo’s profits is the Super Mario Bros Movie. They’ve never had an event like that before. Plus, the theme parks are probably a source of income. If you take out the movie, I think their profits would be down or flat at best.
I don’t think they would be flat even without the movie. I mean the system still sells like crazy even though they are down which is to be expected
“13% rise in net profit to 130.37 billion yen. Nintendo made previously made Y115.78 billion net.”
“First-half revenue from mobile and intellectual property-related income more than doubled to Y55.0 billion from Y23.5 billion in the year-earlier period”
Let’s face it, it’s not their mobile games that responsible for this increase, if anything, that would be down. It’s the Super Mario Bros movie that’s largely responsible for this increase. If you take that away that doubling of intellectual property-related income, then their profits would be down.
Nintendo, have got to see what a potential goldmine they have there to increase profits going forward. We know there’s a Zelda movie in the works. And most probably a sequel to the Super Mario Bros movie. Their investors will be telling them to allow more movies be made.
Mario Wonder helped heaps..
I mean does it really matter if the movie boosted them or not? The fact remains is they are making money big time.
Good for them! Their decisions to branch out to other forms of media / entertainment years ago was incredibly wise (movies, theme parks, etc.). Hoping for a new system announcement this week!
Also remember that Mario Kart 8 is an unstoppable money printer, consistently among the top-selling Nintendo games years after its original release on the previous console.
I expect one of the top launch titles for the Switch 2 to be Mario Kart 9.