Nintendo’s profit fell 59.9% in the first fiscal half and earnings per share fell to 93.33 yen, fully impacting the value of the share.
The actions of Nintendo fell strongly on the Japanese stock market after the video game company has published results that the shareholders of the Japanese firm did not like and cut its sales forecasts for its already aging Nintendo Switch. On the Tokyo Stock Exchange, the stock collapsed 3.86%.
Specifically, the Nintendo attributed profit decreased by 59.9% in the first fiscal semester of the company that created ‘Super Mario’ or ‘The Legend of Zelda’, to 108,658 million yen. In the first six months of the last fiscal year, this metric rose 17.7%, to 271,298 million yen. This has caused Earnings per share (EPS) fell from 233.03 yen per share to 93.33 yen.
In the last semester, Nintendo’s net sales fell 34.3% to 523,299 million yenand its operating profit fell by half (-56.6%), to 121,513 million yen.
Likewise, The Japanese company cut its revenue forecasts by 23% (1.28 trillion yen), but maintains its forecast that net profit will fall by 39%, to 300 billion yenfor the year ending next March 31. According to the firm, these changes have been made based on sales trends observed in the last six months.
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Courtesy of Xataka Mobile
In additionNintendo expects to sell 12.5 million Switch consoles this fiscal year, This figure is below the 13.5 million units previously planned. It also expects to ship 160 million copies of software, down from its previous vision of 165 million copies.
Switch is the second best-selling console in Nintendo historyonly surpassed by Nintendo DS. Since its launch in March 2017, the hybrid console has sold 164 million units and more than 1.3 billion video games in these seven years, breaking record after record in the process.
Nintendo: the changes that investors expect
However, analysts such as Serkan Toto, CEO of Kantan Games, They believe that users and investors are crying out for a successor to their successful console and they have not liked the few new developments from Nintendo in this regard. Regarding this, Shuntaro Furukawa, president of the Japanese company, has announced in a conference with analysts that they have not changed their plans: Nintendo hopes to announce its next hardware before the end of its fiscal year, but did not give more details about it.
“For a platform that is in its eighth year on the marketboth hardware and software enjoy stable demand and strong sales. However, sales so far have been below our original projections. Taking into account the sales of the first half of the year, we revised our forecasts for hardware and software, which led to the revision of profits,” said the Nintendo executive.
Source: Ambito
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