Consolidated Financial Highlights: Six Months Ended September 30, 2018

Key insights

7 takeaways

01
Nintendo's consolidated net sales for the six months ended September 30, 2018 reached 388.9 billion yen, up 4.0% year-on-year, while operating profit rose 53.7% to 61.4 billion yen.See it on page 1
02
The Nintendo Switch was the primary growth driver, with 5.07 million hardware units sold and software sales surging 91.3% to 42.13 million units.See it on page 3
03
Profit attributable to owners of the parent grew 25.4% to 64.5 billion yen, outpacing revenue growth and reflecting improved profitability.See it on page 5
04
Digital sales for dedicated video game platforms rose 71.7% to 39.1 billion yen, signaling strong momentum in digital distribution.See it on page 7
05
The aging Nintendo 3DS declined sharply in its eighth year, with hardware sales down 65.1% and software sales down 54.6%.See it on page 3
06
Overseas sales accounted for 77.8% of total net sales, and the company remained financially stable with total assets of 1.74 trillion yen and a capital adequacy ratio of 77.5%.See it on page 5
07
Management kept its full-year forecast for the fiscal year ending March 31, 2019 unchanged, projecting net sales of 1.2 trillion yen and operating profit of 225 billion yen.See it on page 1

Summary

Nintendo Co., Ltd. reported positive financial growth for the six-month period ending September 30, 2018, driven primarily by the sustained popularity of the Nintendo Switch platform. Consolidated net sales reached 388.9 billion yen, representing a 4.0% increase compared to the same period in the previous fiscal year. Operating profit saw a significant rise of 53.7% to 61.4 billion yen, while profit attributable to owners of the parent grew by 25.4% to 64.5 billion yen.

The Nintendo Switch platform served as the primary growth engine, with hardware sales reaching 5.07 million units and software sales surging by 91.3% to 42.13 million units. Digital sales for dedicated video game platforms also experienced strong momentum, increasing by 71.7% to 39.1 billion yen. Conversely, the Nintendo 3DS platform experienced a decline, with hardware and software sales dropping by 65.1% and 54.6%, respectively, as the platform entered its eighth year. The smart device and IP-related business segment contributed 18.7 billion yen in revenue, a 4.7% year-on-year increase, supported by the launch of Dragalia Lost and the continued performance of established titles.

Geographically, the company maintained a strong international presence, with overseas sales accounting for 77.8% of total net sales. The financial position remains stable, with total assets of 1.74 trillion yen and a capital adequacy ratio of 77.5%. Management maintained its original full-year financial forecast for the fiscal year ending March 31, 2019, projecting net sales of 1.2 trillion yen and an operating profit of 225 billion yen. Future growth strategies focus on accelerating Nintendo Switch momentum through upcoming software releases and expanding the smart device portfolio.