Consolidated Financial Highlights: Nine Months Ended December 2016

Key insights

7 takeaways

01
Nintendo reported net sales of 311.1 billion yen for the nine months ending December 2016, a 26.9% decrease year-over-year, alongside a 38.1% decline in operating income to 26.3 billion yen.See it on page 1
02
Profit attributable to owners of the parent surged 153.9% to 102.9 billion yen, primarily due to a 63.5 billion yen extraordinary gain from the sale of equity in the Seattle Mariners ownership group.See it on page 5
03
Wii U hardware sales plummeted 75% to 0.76 million units as the company executed a managed phase-out of the console ahead of the March 2017 Nintendo Switch launch.See it on page 7
04
Pokémon Sun and Pokémon Moon were major commercial drivers, achieving 14.69 million units sold during the period.See it on page 3
05
The mobile strategy showed early momentum with Super Mario Run exceeding 40 million downloads within four days of its December 2016 release, though the Animal Crossing mobile title was deferred to the next fiscal year.See it on page 3
06
Overseas markets remain the company's primary revenue driver, accounting for 71.2% of total net sales.See it on page 6
07
Nintendo maintains a strong balance sheet with 1.46 trillion yen in total assets and a capital adequacy ratio of 86.5%.See it on page 1

Summary

This financial report details the consolidated operating results for Nintendo Co., Ltd. for the nine-month period ending December 31, 2016. The primary objective is to present the company’s financial standing, performance metrics, and strategic outlook ahead of the March 2017 launch of the Nintendo Switch. The data reflects a period of transition, characterized by strong performance in the Nintendo 3DS family and mobile applications, contrasted with a significant decline in Wii U hardware and software sales.

Key financial findings for the nine-month period include net sales of 311.1 billion yen, representing a 26.9% decrease compared to the same period in the previous year. Operating income fell by 38.1% to 26.3 billion yen. However, profit attributable to owners of the parent surged by 153.9% to 102.9 billion yen, largely driven by a 63.5 billion yen extraordinary gain from the sale of equity in the company managing the Seattle Mariners. Overseas markets remained critical, accounting for 71.2% of total net sales.

Operational highlights include the success of Pokémon Sun and Pokémon Moon, which sold 14.69 million units, and the positive reception of the Super Mario Run mobile application, which surpassed 40 million downloads within four days of its December 2016 release. Conversely, Wii U hardware sales dropped 75% to 0.76 million units, aligning with the company’s managed phase-out of the console. The company maintains a robust financial position with total assets of 1.46 trillion yen and a capital adequacy ratio of 86.5%. Looking forward, the company has revised its full-year financial forecasts to account for the upcoming Nintendo Switch launch and the release of new smart device applications, while deferring the release of the Animal Crossing mobile title to the next fiscal year.