Nintendo Consolidated Financial Highlights: Three Months Ended June 30, 2018

Nintendo’s consolidated financial results for the first quarter of the fiscal year ending March 31, 2019, demonstrate strong growth driven by the continued momentum of the Nintendo Switch platform. The primary thesis of the report is that the company is successfully leveraging its hardware install base and expanding its digital business to drive profitability, maintaining its full-year financial forecasts despite the natural decline of legacy hardware like the Nintendo 3DS.

Key financial metrics for the three-month period ending June 30, 2018, show net sales of 168.1 billion yen, a 9.1% increase compared to the same period in the previous year. Operating profit rose significantly by 88.4% to 30.5 billion yen, while profit attributable to owners of the parent reached 30.6 billion yen, representing a 43.9% increase. Overseas sales accounted for 76.6% of total revenue, highlighting the company’s global reach. Digital sales for dedicated video game platforms were a notable growth driver, surging 68% year-on-year to 18.5 billion yen.

The company’s performance is underpinned by the Nintendo Switch, which saw software sales reach 17.96 million units, a 120.8% increase over the prior year, supported by titles such as Donkey Kong Country: Tropical Freeze and Mario Tennis Aces. Conversely, the Nintendo 3DS platform experienced a decline, with hardware and software sales dropping by 61.9% and 49.6%, respectively, as the platform nears the end of its lifecycle. The smart-device and IP-related business remained stable, contributing 9.0 billion yen in revenue.

The report maintains the 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 strategy focuses on accelerating Switch momentum through a robust release schedule, the launch of the Nintendo Switch Online service, and the introduction of new smart-device applications like Dragalia Lost and Mario Kart Tour.