Nintendo Confirms Financial Resurgence News
Jon Wilcox
24/07/2006
Strong sales in New Super Mario Bros help to boost Nintendo's financial status...
Nintendo has today confirmed its financial results for the first quarter of the 2006/07 fiscal year, which ended on June 30th 2006, and for the end of the 2005/06 fiscal year as a whole.
For the first quarter, the company confirmed net sales of 130.9 billion Yen (£605 million), up 85% compared to the same period twelve months ago, when sales topped 70.7 billion Yen (£327.1 million). Operating income on the year leapt by a massive 667.1% from 3.6 billion Yen (£16.7 million) in the first quarter of 2005/06 to 28.8 billion Yen (£133.2 million), whilst net income rose by 10.2% from 14.1 billion Yen (£65.2 million) to 15.6 billion Yen (£72.2 million).
The news comes as Nintendo confirmed that New Super Mario Bros reached 3.82 million copies worldwide, along with strong sales for a number of other titles including Brain Training.
Following a decision to reallocate income between the US and Japanese sides of the business, stronger than anticipated sales of the Nintendo DS, and current movements in currency exchange rates, Nintendo has also revised its forecasts for the first six months and full term of the 2006/07 fiscal year.
Previous net sale forecasts for the six months up to the end of September 2006 stood at 220 billion Yen (£1.0 billion), but have now risen to 250 billion Yen (£1.2 billion). Net income for the same period is expected to increase from 15 billion Yen (£69.4 million) to 27 billion Yen (£125.0 million). By the end of the fiscal year on March 31st 2007, net sales are now expected to stand at 640 billion Yen (£2.96 billion),up from earlier forecasts of 600 billion Yen (£2.78 billion), whilst net income is expected to increase by 27.7% from 65 billion Yen (£300.7 million) to 83 billion Yen (£384.0 million).
We'll have more news shortly...