Nintendo Co., Ltd.
CONSOLIDATED FINANCIAL HIGHLIGHTS
November 7, 2023
Nintendo Co., Ltd.
11-1Hokotate-cho, Kamitoba,
Minami-ku, Kyoto 601-8501
Japan
(Amounts below one million yen are rounded down)
Consolidated Results for the Six Months Ended September 30, 2022 and 2023
(1) Consolidated operating results
Net sales | Operating profit | Ordinary profit | Profit attributable | |||||
to owners of parent | ||||||||
million yen | % | million yen | % | million yen | % | million yen | % | |
Six months ended September 30, 2023 | 796,237 | 21.2 | 279,910 | 27.0 | 380,007 | 17.8 | 271,298 | 17.7 |
Six months ended September 30, 2022 | 656,974 | 5.2 | 220,387 | 0.2 | 322,464 | 36.5 | 230,451 | 34.1 |
[Notes]
Percentages for net sales, operating profit etc. show increase from the previous fiscal year.
Comprehensive income: Six months ended September 30, 2023: 344,374 million yen [6.0%] Six months ended September 30, 2022: 324,794 million yen [84.0%]
Profit per share | Diluted profit per share | |||||||||||
yen | yen | |||||||||||
Six months ended September 30, 2023 | 233.03 | - | ||||||||||
Six months ended September 30, 2022 | 197.61 | - | ||||||||||
[Notes] | ||||||||||||
The Company enacted a 10-for-1 stock split of its common stock with an effective date of October 1, 2022. | ||||||||||||
Profit per share is calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year. | ||||||||||||
(2) Consolidated financial positions | ||||||||||||
Total assets | Net assets | Capital adequacy | ||||||||||
ratio | ||||||||||||
million yen | million yen | % | ||||||||||
As of September 30, 2023 | 3,170,476 | 2,468,664 | 77.8 | |||||||||
As of March 31, 2023 | 2,854,284 | 2,266,466 | 79.4 | |||||||||
[Reference] | ||||||||||||
Shareholders equity : As of September 30, 2023: 2,467,518 million yen As of March 31, 2023: 2,266,234 million yen | ||||||||||||
Dividends | ||||||||||||
Dividend per share | ||||||||||||
End of 1st quarter | End of 2nd quarter | End of 3rd quarter | Year-end | Annual | ||||||||
yen | yen | yen | yen | yen | ||||||||
Year ended March 31, 2023 | - | 630.00 | - | 123.00 | - | |||||||
Year ending March 31, 2024 | - | 80.00 | ||||||||||
Year ending March 31, 2024 | - | 101.00 | 181.00 | |||||||||
(forecast) | ||||||||||||
[Notes]
Revisions to previously announced dividend forecast: Applicable
The Company enacted a 10-for-1 stock split of its common stock with an effective date of October 1, 2022.
The dividend for the 2nd quarter of the fiscal year ended March 31, 2023 presents the amount prior to the stock split. The dividend for the year-end of the fiscal year ended March 31, 2023 presents the amount after the stock split.
Please refer to "Notice of Dividend (end of 2nd quarter) and Dividend Forecast Modifications" announced on November 7, 2023 for more details.
Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024
Net sales | Operating profit | Ordinary profit | Profit attributable | Profit per share | |||||
to owners of parent | |||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | |
Year ending March 31, 2024 | 1,580,000 | (1.4) | 500,000 | (0.9) | 600,000 | (0.2) | 420,000 | (3.0) | 360.75 |
[Notes]
Percentages for net sales, operating profit etc. show decrease from the previous fiscal year. Revisions to previously announced financial forecast: Applicable
Please refer to "Notice of Full-Year Financial Forecast Modifications" announced on November 7, 2023 for more details.
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Nintendo Co., Ltd.
Others
(1) | Changes for important subsidiaries during the six-month period ended September 30, 2023 | : Applicable | |
Newly consolidated: 1 company (Nintendo Systems Co., Ltd.) | |||
Excluded: | 1 company (Nintendo France S.A.R.L.) | ||
(2) | Application of accounting procedures specific to the preparation of quarterly consolidated financial statements | : Applicable | |
(3) | Changes in accounting procedures: |
1) | Related to accounting standard revisions etc. | : Not applicable |
2) | Other changes | : Not applicable |
3) | Changes in accounting estimates | : Not applicable |
4) | Modified restatements | : Not applicable |
- Outstanding shares (common shares)
- Number of shares outstanding (including treasury shares)
As of Sep. 30, 2023: | 1,298,690,000 | shares | As of Mar. 31, 2023: | 1,298,690,000 | shares | |
2) | Number of treasury shares | |||||
As of Sep. 30, 2023: | 134,451,336 | shares | As of Mar. 31, 2023: | 134,460,640 | shares | |
3) | Average number of shares | |||||
Six months ended | 1,164,232,981 | shares | Six months ended | 1,166,192,773 | shares | |
Sep. 30, 2023: | Sep. 30, 2022: | |||||
[Notes]
The Company enacted a 10-for-1 stock split of its common stock with an effective date of October 1, 2022.
Outstanding shares (common shares) are calculated based on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
[Notes]
- This earnings release report is not subject to quarterly review procedures by a certified public accountant or audit firm.
- Forecasts announced by the Company (Nintendo Co., Ltd.) referred to above were prepared based on management's assumptions with information available at this time and therefore involve known and unknown risks and uncertainties such as fluctuation in foreign exchange rates and other changes in the market environment. Please note such risks and uncertainties may cause the actual results (earnings, dividend, and other results) to be materially different from the forecasts.
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Nintendo Co., Ltd.
1. Consolidated Operating Results
Regarding the Nintendo Switch business during the second quarter (April through September 2023), each title released this fiscal year has sold well, with The Legend of Zelda: Tears of the Kingdom (released in May) posting sales of 19.50 million units, and Pikmin 4 (released in July) posting sales of 2.61 million units. In addition, the April release of The Super Mario Bros. Movie positively impacted sales of Mario related titles, such as Mario Kart 8 Deluxe which recorded sales of 3.22 million units (for cumulative sales of 57.01 million units). Sales of other titles also continued to grow steadily, bringing the total number of million- seller titles during this period to 16, including titles from other software publishers. As a result of these factors, hardware sales increased 2.4% year-on-year to 6.84 million units, and software unit sales increased 1.8% year-on-year to 97.08 million units.
Turning to our digital business for the dedicated video game platform, downloadable versions of packaged software for Nintendo Switch sold well, and sales related to add-on content and Nintendo Switch Online also increased. Digital sales reached 217.5 billion yen, up 15.8% year-on-year, helped also by the depreciation of the yen.
In the mobile and IP-related business, sales totaled 55.0 billion yen, up 133.3% year-on-year, bolstered mainly by the generation of revenue related to The Super Mario Bros. Movie during this term.
The end result is that overall sales reached 796.2 billion yen, with sales outside Japan of 623.6 billion yen accounting for 78.3% of that total. Operating profit came to 279.9 billion yen. Incomes such as foreign exchange gains of 57.7 billion yen helped bring ordinary profit to 380.0 billion yen and profit attributable to owners of parent to 271.2 billion yen.
2. Consolidated Financial Forecast
For hardware, by continuing to convey the appeal of Nintendo Switch, we try not only to put one system in every home, but several in every home, or even one for every person. Another objective is to continually release new offerings so more consumers keep playing Nintendo Switch even longer and we can maximize hardware sales. For software, we released Super Mario Bros. Wonder in October as the first entirely new installment in the side-scrolling Super Mario Bros. series in almost 11 years. In that same month we released Detective Pikachu Returns, and heading into the holiday season we plan to release more titles, including WarioWare: Move It! and Super Mario RPG (both set for release in November). In addition, The Indigo Disk, the second part of The Hidden Treasure of Area Zero add -on content for Pokémon Scarlet and Pokémon Violet, is scheduled for release in December. Other software publishers also plan to release a wide variety of titles, and we will work to invigorate the platform by supplementing existing titles with a continuous stream of new titles and add-on content.
We have revised the financial forecast originally published on May 9, 2023. For details, please see the Notice of Full-Year Financial Forecast Modifications issued today (November 7, 2023).
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Nintendo Co., Ltd. | |||
3. Consolidated Balance Sheets | |||
million yen | |||
Description | As of March 31, 2023 | As of September 30, 2023 | |
(Assets) | |||
Current assets | |||
Cash and deposits | 1,263,666 | 1,404,125 | |
Notes and accounts receivable-trade | 119,932 | 129,046 | |
Securities | 615,699 | 664,489 | |
Inventories | 258,628 | 317,285 | |
Other | 56,822 | 91,684 | |
Allowance for doubtful accounts | (236) | (190) | |
Total current assets | 2,314,513 | 2,606,440 | |
Non-current assets | |||
Property, plant and equipment | 99,509 | 106,711 | |
Intangible assets | 18,595 | 15,344 | |
Investments and other assets | 421,666 | 441,979 | |
Total non-current assets | 539,770 | 564,035 | |
Total assets | 2,854,284 | 3,170,476 | |
(Liabilities) | |||
Current liabilities | |||
Notes and accounts payable-trade | 149,217 | 167,310 | |
Provisions | 4,219 | 4,553 | |
Income taxes payable | 82,550 | 111,724 | |
Other | 297,492 | 354,963 | |
Total current liabilities | 533,480 | 638,552 | |
Non-current liabilities | |||
Provisions | 133 | 51 | |
Retirement benefit liability | 23,084 | 25,669 | |
Other | 31,119 | 37,538 | |
Total non-current liabilities | 54,337 | 63,259 | |
Total liabilities | 587,818 | 701,812 | |
(Net assets) | |||
Shareholders' equity | |||
Share capital | 10,065 | 10,065 | |
Capital surplus | 15,079 | 15,120 | |
Retained earnings | 2,392,704 | 2,520,802 | |
Treasury shares | (271,049) | (271,031) | |
Total shareholders' equity | 2,146,798 | 2,274,956 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 28,028 | 31,138 | |
Foreign currency translation adjustment | 91,406 | 161,423 | |
Total accumulated other comprehensive income | 119,435 | 192,561 | |
Non-controlling interests | 232 | 1,146 | |
Total net assets | 2,266,466 | 2,468,664 | |
Total liabilities and net assets | 2,854,284 | 3,170,476 |
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Nintendo Co., Ltd. | |||
4. Consolidated Statements of Income | |||
million yen | |||
Description | Six months ended September 30, 2022 | Six months ended September 30, 2023 | |
Net sales | 656,974 | 796,237 | |
Cost of sales | 265,363 | 324,204 | |
Gross profit | 391,610 | 472,033 | |
Selling, general and administrative expenses | 171,222 | 192,123 | |
Operating profit | 220,387 | 279,910 | |
Non-operating income | |||
Interest income | 7,875 | 23,456 | |
Foreign exchange gains | 76,467 | 57,773 | |
Other | 18,877 | 19,176 | |
Total non-operating income | 103,220 | 100,406 | |
Non-operating expenses | |||
Interest expenses | 72 | 63 | |
Loss on sale of securities | 1 | 150 | |
Loss on valuation of investment securities | 928 | 70 | |
Other | 139 | 24 | |
Total non-operating expenses | 1,143 | 308 | |
Ordinary profit | |||
322,464 | 380,007 | ||
Extraordinary income | |||
Gain on sale of non-current assets | 33 | 3 | |
Total extraordinary income | 33 | 3 | |
Extraordinary losses | |||
Loss on disposal of non-current assets | 143 | 31 | |
Total extraordinary losses | 143 | 31 | |
Profit before income taxes | 322,355 | 379,980 | |
Total income taxes | 91,906 | 108,732 | |
Profit | |||
230,449 | 271,247 | ||
Loss attributable to non-controlling interests | (2) | (51) | |
Profit attributable to owners of parent | |||
230,451 | 271,298 |
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Nintendo Co., Ltd. | ||||
5. Consolidated Statements of Comprehensive Income | ||||
million yen | ||||
Description | Six months ended September 30, 2022 | Six months ended September 30, 2023 | ||
Profit | 230,449 | 271,247 | ||
Other comprehensive income | ||||
Valuation difference on available-for-sale securities | (1,635) | 3,011 | ||
Foreign currency translation adjustment | 86,781 | 63,806 | ||
Share of other comprehensive income of entities | 9,199 | 6,308 | ||
accounted for using equity method | ||||
Total other comprehensive income | 94,345 | 73,126 | ||
Comprehensive income | 324,794 | 344,374 | ||
(Comprehensive income attributable to) | ||||
Comprehensive income attributable to owners of parent | 324,797 | 344,425 | ||
Comprehensive income attributable to non-controlling interests | (2) | (51) |
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Nintendo Co., Ltd.
6. Notes to Consolidated Financial Statements
(Going Concern Assumption) There are no applicable items.
(Significant changes in shareholders' equity) There are no applicable items.
(Application of accounting procedures specific to the preparation of quarterly consolidated financial statements) (Calculation of tax expenses)
With respect to certain consolidated subsidiaries, corporate income tax amount is calculated by taking the amount of profit before income taxes through the six-month period ended September 30, 2023 multiplied by a reasonably estimated annual effective tax rate with the effects of deferred taxes reflected.
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Nintendo Co., Ltd. | ||||||||
7. Others | ||||||||
(1) Consolidated sales information | million yen | |||||||
Japan | The Americas | Europe | Other | Total | ||||
Dedicated video game platform | 158,726 | 307,278 | 177,925 | 92,837 | 736,767 | |||
Six months ended | of which Nintendo Switch platform (*1) | 151,410 | 304,752 | 175,807 | 91,399 | 723,369 | ||
September 30, | of which the others (*2) | 7,316 | 2,526 | 2,117 | 1,438 | 13,398 | ||
2023 | Mobile, IP related income, etc. (*3) | 10,537 | 39,769 | 3,764 | 939 | 55,010 | ||
Playing cards, etc. | 3,273 | 1,063 | - | 122 | 4,459 | |||
Total | 172,537 | 348,111 | 181,689 | 93,899 | 796,237 | |||
Japan | The Americas | Europe | Other | Total | ||||
Dedicated video game platform | 148,499 | 272,857 | 148,801 | 61,254 | 631,412 | |||
Six months ended | of which Nintendo Switch platform (*1) | 141,826 | 267,277 | 146,846 | 60,193 | 616,143 | ||
September 30, | of which the others (*2) | 6,673 | 5,579 | 1,954 | 1,061 | 15,269 | ||
2022 | Mobile, IP related income, etc. (*3) | 8,703 | 11,939 | 2,173 | 764 | 23,581 | ||
Playing cards, etc. | 1,165 | 814 | - | 0 | 1,979 | |||
Total | 158,367 | 285,611 | 150,975 | 62,019 | 656,974 | |||
[Note] Digital sales | in dedicated video game platform (*4): | |||||||
Six months ended September 30, 2023: 217.5 billion yen | Six months ended September 30, 2022: 187.8 billion yen |
*1. Nintendo Switch platform includes hardware, software (including downloadable versions of packaged software, download-only software, add-on content and Nintendo Switch Online) and accessories.
*2. Includes platforms other than Nintendo Switch and also amiibo.
*3. Includes income from visual content, smart-device content and royalties.
*4. Includes downloadable versions of packaged software, download-only software, add-on content and Nintendo Switch Online.
(2) Other consolidated information | million yen | ||||
Six months ended | Six months ended | Year ending March 31, 2024 | |||
September 30, 2022 | September 30, 2023 | (Forecast) | |||
Depreciation of property, plant and equipment | 3,069 | 3,401 | 7,000 | ||
Research and development expenses | 51,321 | 59,433 | 130,000 | ||
Advertising expenses | 39,069 | 44,336 | 105,000 | ||
Average exchange rates | 1 USD = | 133.93 yen | 140.96 yen | 140.48 yen | |
1 Euro = | 138.66 yen | 153.40 yen | 151.69 yen | ||
Consolidated net sales in U.S. dollars | 2.0 billion | 2.3 billion | - | ||
Consolidated net sales in Euros | 1.0 billion | 1.1 billion | - | ||
Non-consolidated purchases in U.S. dollars | 1.9 billion | 2.1 billion | - |
(3) Balance of major assets and liabilities in foreign currencies (non-consolidated) | million U.S. dollars/Euros | |||||
As of March 31, 2023 | As of September 30, 2023 | As of March 31, 2024 | ||||
Balance | Exchange rate | Balance | Exchange rate | Estimated exchange rate | ||
USD | Cash and deposits | 2,560 | 1 USD= | 2,405 | 1 USD= | 1 USD= |
Accounts receivable-trade | 893 | 872 | ||||
133.00 yen | 149.37 yen | 140.00 yen | ||||
Accounts payable-trade | 816 | 801 | ||||
Euro | Cash and deposits | 199 | 1 Euro= | 256 | 1 Euro= | 1 Euro= |
Accounts receivable-trade | 663 | 144.67 yen | 742 | 157.94 yen | 150.00 yen |
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Nintendo Co., Ltd.
(4) Consolidated sales units, number of new titles, and sales units forecast
Actual | Actual | ||
Apr. '22-Sep. '22 | Apr. '23-Sep. '23 | ||
Nintendo Switch | |||
Hardware (Total) | Japan | 173 | 218 |
The Americas | 256 | 203 | |
Europe | 169 | 157 | |
Other | 70 | 106 | |
Total | 668 | 684 | |
of which Nintendo Switch | Japan | 44 | 29 |
The Americas | 91 | 37 | |
Europe | 72 | 41 | |
Other | 15 | 18 | |
Total | 223 | 125 | |
of which Nintendo Switch | Japan | 114 | 159 |
- OLED Model | The Americas | 112 | 129 |
Europe | 79 | 102 | |
Other | 49 | 79 | |
Total | 353 | 469 | |
of which Nintendo Switch Lite | Japan | 15 | 30 |
The Americas | 52 | 38 | |
Europe | 18 | 14 | |
Other | 6 | 9 | |
Software | Total | 92 | 90 |
Japan | 2,073 | 1,737 | |
The Americas | 3,770 | 4,212 | |
Europe | 2,846 | 2,697 | |
Other | 853 | 1,062 | |
New titles | Total | 9,541 | 9,708 |
Japan | 151 | 180 | |
The Americas | 252 | 245 | |
Europe | 227 | 222 | |
[Notes]
Sales Units in Ten Thousands
Number of New Titles Released
Life-to-date | Forecast | |
Sep. '23 | Apr. '23-Mar. '24 | |
3,177 | ||
5,103 | ||
3,415 | ||
1,551 | ||
13,246 | 1,500 | |
2,003 | ||
3,512 | ||
2,467 | ||
1,102 | ||
9,083 | ||
604 | ||
611 | ||
452 | ||
304 | ||
1,971 | ||
571 | ||
980 | ||
496 | ||
145 | ||
2,192 | ||
21,752 | ||
49,839 | ||
32,788 | ||
8,943 | ||
113,323 | 18,500 | |
1,706 | ||
2,113 | ||
2,041 |
- Software sales units include both packaged and downloadable versions of software, and do not include download-only software or add-on content.
- The number of new titles is the number of packaged software.
- Actual software sales units include the quantity bundled with hardware or other products.
- While forecasted software sales units include the quantity bundled with hardware or other products for six months ended September 30, 2023, they do not include the quantity to be bundled with hardware or other products on and after October 1, 2023.
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Nintendo Co. Ltd. published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2023 06:36:11 UTC.