Nintendo stated that revenue for the June quarter was 461.34 billion yen ($3.2 billion), showing an increase of 50% compared to the same period last year. This is largely thanks to the launch of the film "The Super Mario Bros. Movie," which stars Nintendo's most famous characters, and which has gathered $1 billion in box office since its April release. Additionally, in May, the highly awaited game, "The Legend of Zelda: Tears of the Kingdom" was released; it has become the fastest selling title in the series according to Nintendo.
Nintendo reported a surge in revenue and operating profit in its fiscal first quarter, driven by the success of the "Super Mario Bros. Movie" and the popularity of its newest Zelda game for the Switch console. Here are the figures versus Refinitiv estimates: Revenue of 461.34 billion yen ($3.2 billion) versus 395.40 billion yen expected; Net profit of 181.02 billion yen versus 109.91 billion yen expected. Year-on-year, Nintendo's revenue increased 50% and net profit surged by 52%. Operating profit clocked in at 185.44 billion yen, beating expectations and jumping 82.4% year-on-year. Fueling this success was the April release of "The Super Mario Bros. Movie," based on the company's best-known characters, which has already generated more than $1 billion in box office revenue. The gaming giant also released the highly anticipated game "The Legend of Zelda: Tears of the Kingdom" in May, becoming the fastest selling title in the series' history. Commenting on the figures, Nintendo said in an earnings release that “both sales and profits were notably large for a first quarter mainly due to the concurrent releases of 'The Super Mario Bros. Movie' and 'The Legend of Zelda: Tears of the Kingdom'.” For its current fiscal year, which ends in March 2024, Nintendo is forecasting revenue of 1.45 trillion yen and profit of 340 billion yen.
Nintendo previously estimated it would move 15 million units of its signature Switch series within the year ending in March 2024. This amount is lower than the 18 million units it sold in the fiscal year before. During the June quarter, the organization reported that it sold 3.91 million Switch consoles, which is an increase of 13.9% compared to the same period the previous year.
The Switch, released more than six years ago, has investors fearing that buyers' interest may have peaked. The recent rise in sales, however, could help reduce those worries. The quarter demonstrates Nintendo's capability to keep making money from its yearly 116 million users and, possibly, prolong the console's life span. In an effort to liven up the device, Nintendo has produced a handheld version and one with an improved display. However, industry watchers are speculating about whether a new version will be released to rejuvenate the Switch and the company itself. In April, Jefferies analysts wrote in a note that Nintendo will probably release an updated version of the Switch in the current or following fiscal year, beginning in April 2024. The timing of the new console's release will hinge on Nintendo's economic standing and if they need it to raise sales over the current or next year.
The Mario film's success had a far-reaching effect on Nintendo, aiding sales of related Mario games like Mario Kart 8 Deluxe. This, alongside blockbuster revenue from The Legend of Zelda: Tears of the Kingdom (18.51 million units sold in the last quarter), helped Nintendo report 31.8 billion Japanese yen in June revenue for mobile and intellectual property-related business, a 190% increase on the year prior. Their software sales rose to 52.21 million units, a 26% year-on-year boost.Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
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