9M-2016: Nintendo net sales down 3.9 per cent; Software sales decline

BENGALURU: Nintendo Company Limited (Nintendo) reported 3.9 per cent decline in net sales at ¥4,25,664 million for the nine month period ended December 31, 2015 (9M-2016, current nine-month period, current period) as compared to ¥4,42,920 million in the corresponding year ago nine month period. Software sales during the current nine month period declined 10.5 per cent to ¥1,85,410 million as compared to ¥2,07,128 million during the corresponding year ago period. The company reported operating income in the current nine month period at ¥42,485 million as compared to an operating profit of ¥31,604 million in the corresponding year ago period. Ordinary income (including income from interest from interest, etc.) at ¥55,295 million declined 40.1 per cent as compared to ¥92,356 million in 9M-2016. Net Income attributable to owners of parent declined 31.9 per cent in the current period to ¥40,558 million from ¥59.515 million. Net income per share declined 32.8 per cent to ¥337.64 from ¥502.78. Geographical Sales break-up  Of Nintendo’s Net sales of ¥4,25,664 million, overseas sales was ¥3,08,979 million or 72.6 per cent of the total sales. Please refer to Fig A above. In the current period, Japan witnessed a 2.5 per cent decline to ¥1,16,685 million as compared to ¥1,19,715 million in the corresponding period of the previous year. Share of sales in Japan declined to 27 per cent in the current period as compared to 27.4 per cent in the previous year’s period. Share of sales from ‘The Americas’ increased by 1.5 per cent to 43.7 per cent in 9M-2015 from 41.4 per cent. Share of sales from Europe declined 12 per cent (declined by ¥15,041 million) to 25.8 per cent from 28.2 per cent while share of sales from ‘Other’ declined to 3.1 per cent from 3.4 per cent. Category wise sales break up In 9M-2016, share of Hardware Sales increased to 56.2 per cent (¥2,39,033 million) of total sales from 53 per cent (¥2,34,835 million) of total sales, while share of Software sales declined to 43.6 per cent (¥1,85,410 million) of total sales from 46.8 per cent (¥2,07,128 million) as compared to the corresponding year ago period. Please refer to Fig B below. Share of ‘Other’ category which includes Playing cards, Karuta, etc., increased to 0.3 percent as compare to 0.2 percent (¥1,220million in 9M-2016, ¥957 million in 9M-2015) of total sales. Amiibo_GroupNinetendo says that during 9M-2016, During the nine month period ended December 31, 2015, for Nintendo 3DS, New Nintendo 3DS and New Nintendo 3DS XL, both of which launched during the previous period as the newest members of the Nintendo 3DS family, made up the bulk of the Nintendo 3DS hardware sales. The Nintendo 3DS software, Animal Crossing: Happy Home Designer became a hit by selling 2.93 million units globally, while in overseas markets, popular titles such as Pokémon Omega Ruby/Pokémon Alpha Sapphire and Super Smash Bros. for Nintendo 3DS which were released during the previous fiscal year showed steady sales. In the Japanese market, titles such as Rhythm Tengoku (Japanese title) and Fire Emblem Fates: Birthright/Conquest gained popularity. In addition, some third-party titles sold over a million units as well. As a result, the global sales of the Nintendo 3DS hardware and software were 5.88 million and 38.87 million units respectively. Wii U, Splatoon sold 4.06 million units and Super Mario Maker sold 3.34 million units, making both titles blockbusters that vitalized the Wii U platform. In addition, Yoshi’s Woolly World, which was released during this period, and evergreen titles released in the previous period such as Mario Kart 8 and Super Smash Bros. for Wii U showed steady sales. The global sales of the Wii U hardware and software reached 3.06 million and 22.62 million units respectively. For amiibo, the figure-type and the card-type sold approximately 20.50 million units and approximately 21.50 million units, respectively, and the platform showed strong performance globally without losing momentum. Furthermore, sales of additional download content for Nintendo 3DS and Wii U increased and total download sales reached ¥30.5 billion.