Nintendo FY3/2017: Notice of Full-Year Financial Forecast Differences with its Results

The Switch was so successful, Nintendo had to save money from advertising in order to balance supply and demand.

 

 

 

Net sales:

Previous forecast (A), announced on January 31, 2017: 470,000 million yen

Actual result (B): 489,095 million yen

Increase (Decrease), (B)-(A): 19,095 million yen

Increase (Decrease), in percentage: 4.1%

 

Operating Profit:

Previous forecast (A), announced on January 31, 2017: 20,000 million yen

Actual result (B): 29,362 million yen

Increase (Decrease), (B)-(A): 9,362 million yen

Increase (Decrease), in percentage: 46.8%

 

Ordinary Profit:

Previous forecast (A), announced on January 31, 2017: 30,000 million yen

Actual result (B): 50,364 million yen

Increase (Decrease), (B)-(A): 20,364 million yen

Increase (Decrease), in percentage: 67.9%

 

Net Income:

Previous forecast (A), announced on January 31, 2017: 90,000 million yen

Actual result (B): 102,574 million yen

Increase (Decrease), (B)-(A): 12,574 million yen

Increase (Decrease), in percentage: 14.0%

 

Source: Nintendo JP.

 

Reasons for differences

Operating profit became larger than we had assumed since the shipment volume of Nintendo Switch hardware exceeded our forecast, and due to lower-than-expected advertising expenses for we had reviewed sales promotions in consideration of the balance between demand and supply.

In addition to the increase in operating profit, ordinary profit exceeded our forecasts due to smaller foreign exchange losses than forecast. This was a result of greater depreciation of the yen against the U.S. dollar towards the end of the period, compared to our exchange rate assumptions.

 

Source: Nintendo JP.

 

 

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