Nintendo Raises Fiscal Year Earnings Forecasts After Profit Climbs — Update

By Kosaku Narioka

Nintendo raised its fiscal-year earnings forecasts after reporting a rise in first-half net profit thanks to the success of a Super Mario film, and stronger Switch console and software sales.

The Japanese videogame maker said Tuesday that net profit increased 18% from a year earlier to 271.30 billion yen ($1.81 billion) for the six months ended Sept. 30. That exceeded the estimate of Y253.50 billion compiled in a poll of analysts by Visible Alpha.

Nintendo raised its forecast for Switch software sales for the fiscal year ending March 2024, while maintaining its expectation for console sales.

The company said it expects to sell 185.0 million copies of Switch software this fiscal year, compared with its previous projection of 180.0 million, and continues to expect sales of 15.0 million Switch consoles.

Nintendo's first-half revenue increased 21% from a year earlier to Y796.24 billion thanks to greater sales of consoles and software, a weaker yen and the success of "The Super Mario Bros. Movie," the company said.

Nintendo sold 6.8 million Switch consoles in its first half, up from 6.7 million units a year earlier, and sold 97.1 million Switch software copies, higher than 95.4 million copies sold a year earlier.

It sold 19.5 million copies of "The Legend of Zelda: Tears of the Kingdom" in its first half since the title's release in May.

Nintendo now projects that net profit will decline 3.0% to Y420.00 billion this fiscal year, compared with its previous view of a 21% drop. It expects revenue to decrease 1.4% to Y1.580 trillion, compared with its previous forecast of a 9.5% fall.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 07, 2023 02:48 ET (07:48 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.