Consolidated Financial Highlights: Three Months Ended June 2007

Key insights

6 takeaways

01
Nintendo's net sales for the three months ended June 30, 2007 reached 340.4 billion yen, up 160.0% year over year, with operating income rising 214.7% to 90.6 billion yen and net income rising 416.0% to 80.2 billion yen.See it on page 1
02
Foreign exchange gains of 29.0 billion yen contributed to the quarter's results, reflecting Nintendo's strong international market presence.See it on page 3
03
The Nintendo DS sold 6.98 million units in the quarter, bringing its lifetime total to 47.27 million units, with the successful U.S. launch of Pokémon Diamond and Pearl anchoring software demand.See it on page 3
04
The Wii sold 3.43 million units in the quarter, for a cumulative total of 9.27 million units, with Super Paper Mario and Mario Party 8 supporting its momentum.See it on page 3
05
Nintendo ended the quarter with 750.1 billion yen in cash and cash equivalents and a capital adequacy ratio of 71.9% on total assets of 1.55 trillion yen, despite outflows for income taxes and dividends.See it on page 1
06
For the fiscal year ending March 31, 2008, management projects net sales of 1.4 trillion yen and net income of 245 billion yen, assuming exchange rates of 118 yen per U.S. dollar and 155 yen per euro.See it on page 1

Summary

Nintendo Co., Ltd.’s consolidated financial results for the three-month period ending June 30, 2007, demonstrate significant growth in the electronic entertainment sector, driven by the robust global performance of the Nintendo DS and Wii hardware platforms. The company reported net sales of 340.4 billion yen, representing a 160.0% increase compared to the same period in the previous year. Operating income surged by 214.7% to 90.6 billion yen, while net income rose by 416.0% to 80.2 billion yen. This performance was bolstered by 29.0 billion yen in foreign exchange gains, reflecting the company’s strong international market presence.

The handheld segment remained a primary revenue driver, with the Nintendo DS selling 6.98 million units during the quarter, bringing its life-to-date total to 47.27 million units. Software sales for the platform were anchored by the successful launch of Pokémon Diamond and Pokémon Pearl in the United States, alongside sustained demand for established titles such as Nintendogs and the Brain Age series. Simultaneously, the Wii console continued its market expansion, selling 3.43 million units during the quarter for a cumulative total of 9.27 million units. Key software releases, including Super Paper Mario and Mario Party 8, contributed to the console's strong momentum.

Financial position remains stable, with total assets of 1.55 trillion yen and a capital adequacy ratio of 71.9%. Cash and cash equivalents reached 750.1 billion yen by the end of the quarter, despite significant outflows related to income tax payments and dividend distributions. Management maintains a positive outlook for the fiscal year ending March 31, 2008, projecting net sales of 1.4 trillion yen and net income of 245 billion yen, based on assumed exchange rates of 118 yen per U.S. dollar and 155 yen per euro.