FinancialNintendo
Consolidated Financial Highlights: Six Months Ended September 30, 2024
1 Nov 20247 pages~10 min full read
Nintendo reported a significant downturn for the first half of the fiscal year ending September 30, 2024, with net sales falling 34.3% to 523.2 billion yen and operating profit dropping 56.6% to 121.5 billion yen.
See it on page 1Management has revised its full-year outlook downward, now projecting annual net sales of 1.28 trillion yen and an operating profit of 360 billion yen, representing year-on-year declines of 23.4% and 31.9% respectively.
See it on page 3The Nintendo Switch hardware sales declined 31% to 4.72 million units, while software sales fell 27.6% to 70.28 million units as the platform enters its eighth year.
See it on page 3The sharp financial contraction is largely attributed to a difficult year-on-year comparison against the prior period, which was bolstered by the release of 'The Legend of Zelda: Tears of the Kingdom' and revenue from 'The Super Mario Bros. Movie'.
See it on page 3Mobile and IP-related revenue experienced a 43.3% decrease due to the absence of the movie-related income that significantly contributed to the previous year's performance.
See it on page 3Despite the overall decline, the company maintained platform engagement with nine million-seller titles, including 'The Legend of Zelda: Echoes of Wisdom' and 'Paper Mario: The Thousand-Year Door'.
See it on page 3The company remains financially stable with a capital adequacy ratio of 82.6%, while international markets continue to drive the business, accounting for 74.7% of total revenue.
See it on page 4Nintendo’s consolidated financial results for the first half of the fiscal year ending March 31, 2025, reveal a significant year-on-year contraction in performance across all major financial metrics. Net sales fell by 34.3% to 523.2 billion yen, while operating profit declined by 56.6% to 121.5 billion yen. Profit attributable to owners of the parent saw a 59.9% decrease, totaling 108.6 billion yen. These results reflect a challenging comparison to the previous year, which benefited from the high-profile release of The Legend of Zelda: Tears of the Kingdom and the global success of The Super Mario Bros. Movie.
The downturn is primarily driven by declining hardware and software volumes as the Nintendo Switch enters its eighth year. Hardware sales reached 4.72 million units, a 31% decrease, while software sales fell 27.6% to 70.28 million units. Despite the overall decline, the platform maintained engagement with nine million-seller titles during the period, led by The Legend of Zelda: Echoes of Wisdom and Paper Mario: The Thousand-Year Door. Digital sales also saw a 26.5% reduction, and mobile/IP-related revenue dropped 43.3% due to the absence of movie-related income that bolstered the prior year’s figures.
Geographically, the business remains heavily export-oriented, with international sales accounting for 74.7% of total revenue. The financial position remains stable with a capital adequacy ratio of 82.6%, though total assets decreased slightly to 3.07 trillion yen. In response to first-half performance falling below initial expectations, full-year forecasts have been revised downward. The updated outlook projects annual net sales of 1.28 trillion yen and an operating profit of 360 billion yen, representing year-on-year decreases of 23.4% and 31.9%, respectively. Management intends to mitigate these trends by focusing on upcoming software releases and maintaining the "multiple systems per household" strategy.
