Financial Results Briefing: Fiscal Year Ended March 2009

Key insights

5 takeaways

01
Nintendo achieved record-setting financial performance for the fiscal year ended March 2009, reporting net sales of 1,838,622 million yen and an operating income of 555,263 million yen.See it on page 2
02
The company maintained an operating income ratio of 30.2% and a gross margin of 793,641 million yen, representing a gross margin ratio of 43.2%.See it on page 3
03
Net income reached 279,089 million yen, despite the company absorbing 133,908 million yen in foreign exchange losses due to currency volatility.See it on page 7
04
Growth was driven by the global adoption of the Wii and Nintendo DS hardware platforms, supported by million-seller software titles including Wii Sports, Wii Fit, and entries in the Mario and Pokémon franchises.See it on page 6
05
The company plans to sustain market share through a product pipeline that includes the Nintendo DSi and a mix of first-party and third-party software titles.See it on page 10

Summary

The financial results for the fiscal year ended March 2009 demonstrate sustained growth for Nintendo, characterized by record-setting net sales and operating income. The company reported net sales of 1,838,622 million yen, representing a consistent upward trajectory from 1,672,423 million yen in the previous fiscal year. Operating income also saw significant improvement, rising to 555,263 million yen, which reflects an operating income ratio of 30.2%. Despite facing challenges related to foreign exchange losses, which totaled 133,908 million yen, the company achieved a net income of 279,089 million yen.

The performance was driven by the robust global adoption of the Nintendo DS and Wii hardware platforms. Sales data indicates that both hardware and software units maintained strong momentum across Japan, the Americas, and other international markets. Key software titles, such as Wii Sports, Wii Fit, and various entries in the Pokémon and Mario franchises, achieved million-seller status, contributing heavily to the overall gross margin of 793,641 million yen. The gross margin ratio improved slightly to 43.2%, underscoring the efficiency of the company's product portfolio.

Geographically, the results reflect a global operation with significant exposure to currency fluctuations, particularly regarding the U.S. Dollar and the Euro. The company’s financial position remained stable despite the volatility in exchange rates throughout the fiscal period. Looking forward, the company outlined a comprehensive product pipeline for the Nintendo DS and Wii, including the introduction of the Nintendo DSi and a variety of first-party titles, alongside a strong lineup of third-party software. These strategic initiatives are designed to maintain market share and sustain consumer engagement across all major regions.