Nintendo Clocks 5% Sales Decline In Q1 As Recovery Kicks In; Reiterates FY23 Outlook

Nintendo Co, Ltd NTDOY reported a first-quarter FY23 net sales decline of 4.7% year-on-year to ¥307.4 billion.
Dedicated video game platform sales declined 4.3% Y/Y to ¥295.6 billion. Mobile, IP-related income sales reduced 16.8% Y/Y to ¥10.9 billion. Playing cards sales rose 56.9% Y/Y to ¥0.8 billion.
Hardware: Unit sales for the entire Nintendo Switch family of systems declined by 22.9% Y/Y to 3.43 million units. Nintendo Switch sales decreased 60% Y/Y to 1.32 million units. Nintendo Switch Lite sales reduced 48.4% Y/Y to 0.59 million units.
Software: Software sales fell 8.6% Y/Y to 41.41 million units. Digital sales rose 16% Y/Y to ¥88 billion.
Profit: The gross profit decreased 4.3% Y/Y to ¥184.5 billion due to a decline in net sales. The gross margin remained flattish at 60%.
The operating profit declined 15.1% Y/Y to ¥101.6 billion due to the gross profit decline and higher SG&A. The operating margin contracted 400 bps to 33.1%.
The net profit increased 28.3% Y/Y to ¥118.9 billion, and the net margin expanded 1,000 bps to 38.7%.
FY23 Outlook: Nintendo reiterated the guidance of net sales of ¥1.6 trillion, representing a 5.6% Y/Y decline.
It sees Nintendo Switch Hardware of 21 million units, implying an 8.9% Y/Y decline. It considers a Nintendo Switch Software of 210 million units, signifying a 10.7% Y/Y decline.
The operating profit outlook remained at ¥500 billion, implying a 15.6% Y/Y decline and a net profit of ¥340 billion, signifying a 28.8% Y/Y decrease.
It held ¥1.12 trillion in cash and equivalents.
Price Action: NTDOY closed lower by 2.36% at $54.53 on Tuesday.
Photo Via Company

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga