Chris Pratt and Charlie Day lend their voices to Mario and Luigi in Universal and Illumination’s highly-anticipated “The Super Mario Bros. Movie.”
Universal
Nintendo has reported a significant increase in revenue and operating profit for the June quarter, driven by the success of “The Super Mario Bros. Movie” and the popularity of its latest Zelda game for the Switch console.
Here’s a breakdown of Nintendo’s performance in its latest fiscal first quarter compared to Refinitiv estimates:
- Revenue: 461.34 billion yen ($3.2 billion) versus the expected 395.40 billion yen.
- Net profit: 181.02 billion yen versus the expected 109.91 billion yen.
Nintendo’s revenue increased by 50% compared to the previous year, while net profit surged by 52%. Operating profit stood at 185.44 billion yen, surpassing expectations with a remarkable 82.4% year-on-year jump.
Prior to the fiscal first quarter, Nintendo experienced two consecutive quarters of revenue and
Nintendo received a boost from “The Super Mario Bros. Movie,” a film based on the company’s iconic characters, which has grossed over $1 billion at the box office since its release in April. The movie was produced by Universal Studios.
The Japanese gaming giant also released a highly-anticipated game called “The Legend of Zelda: Tears of the Kingdom” in May, which became the fastest-selling title in the series’ history.
“In the first quarter of this fiscal year, both sales and profits were notably large for a first quarter, mainly due to the concurrent releases of ‘The Super Mario Bros. Movie’ and ‘The Legend of Zelda: Tears of the Kingdom.’ We made steady progress toward our full-year earnings forecast,” stated Nintendo in an earnings release.
Nintendo previously projected its revenue for the current fiscal year, ending in March 2024, at 1.45 trillion yen and a profit of 340 billion yen.
Nintendo also previously forecasted sales of 15 million units for its flagship Switch game console series in the current fiscal year, ending March 2024. This compares to just under 18 million units sold in the previous fiscal year.
The company reported selling 3.91 million Switch consoles in the June quarter, marking a 13.9% increase compared to the previous year.
Although the Switch is now over six years old, there were concerns among investors that sales may have reached their peak. However, the rise in sales may help alleviate some of those concerns.
Throughout the lifespan of the console, Nintendo has attempted to refresh it with a handheld version and an improved screen.
Analysts at Jefferies noted in an April report that the company is likely to release a refreshed version of the Switch either in the current fiscal year or the next, beginning in April 2024. The timing will depend on Nintendo’s overall financial performance and whether a new Switch is necessary to boost sales over the next year.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
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