Nintendo Posts Strong 1Q Earnings Rise But Retains Forecasts

Nintendo Posts Strong 1Q Earnings Rise But Retains Forecasts

The Japanese video game giant Nintendo kept its forecast for its 2022/23 financial year unchanged on Wednesday, with a cautious attitude to the risk of supply problems and despite the increase in its profits in the first quarter, boosted by a low yen.

In the first quarter of 2022/23 (between April and June), Nintendo recorded a net profit of 118.9 billion yen (893 million dollars), whose increase of 28% compared to the previous year is explained by the depreciation of the yen, explained the group in a statement.

Its sales fell 4.7% in a year to 307.5 billion yen ($2.3 billion) during the same period.

Nintendo said that sales of its Switch console fell 22.9%, mainly due to the global shortage of semiconductors and other components.

Its operating profit fell 15% in the first quarter on-year to 101.6 billion yen ($772 million).

The Japanese group maintained its forecasts, from May, for the 2022/23 financial year as a whole, considering that “production and logistics could be impacted by factors such as parts supply obstacles, including semiconductors, and related risks with covid-19”.

For this reason, it forecasts a net profit of 340,000 million yen (2,600 million dollars) during the entire year -which would entail a decline of almost 29% in one year-, and an operating profit of 500,000 million yen (3,800 million). million dollars), that is, a reduction of 15.7% compared to 2021/22.

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