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Nintendo made $1.23 billion in profit over holiday 2019 quarter

Nintendo pulled in massive profits over the holiday quarter thanks to strong hardware and software sales.

@DeekeTweak
Published Thu, Jan 30 2020 4:45 PM CST   |   Updated Tue, Nov 3 2020 11:45 AM CST

Nintendo earnings soar on the back of strong Switch hardware and software sales, with the Kyoto-based games-maker pulling in over $1 billion profit in the Holiday 2019 quarter.

Nintendo made $1.23 billion in profit over holiday 2019 quarter | TweakTown.com

Today Nintendo announced stellar results for its Fiscal Year Q3'19 period. In the October - December 2019 quarter, Nintendo made $1.23 billion in total profits, up nearly 30% year-over-year, driven by a 10.8 million Switch hardware sales spike. Software also saw a jump with the release of Pokemon Sword and Shield, which generated 16.06 million sales in a single month's time.

The Switch platform makes up the bulk of Nintendo's total earnings (Switch represents 93% of Nintendo's nine-month figures) so the company's results are inextricably tied to the system's performance.

Total net sales, which includes hardware and software, sat at $5.3 billion, down 4.94% YoY. The company didn't give any color or reasoning for this drop. Switch hardware sales were up 14.86% from last year, and Switch game sales also rose to 64 million, representing a huge 23% increase year-over-year.

Read Also: Switch sales have surpassed Xbox One

Net sales dropped to $3.8 billion after consolidating Costs of Goods Sold. Remember, like any company, Nintendo spends quite a bit of the cash it earns on manufacturing, production, R&D, and more. In Q3 alone it spent 3.25 billion yen ($2.99 billion) on costs of goods and services.

Operating profit for Q3'19 was 168.7 billion yen ($1.55 billion), up 6.35% year-over-year. Reuters notes this is the highest operating income Nintendo's had in over a decade.

Based on these earnings, Nintendo has upwardly revised its total Fiscal Year 2019 forecast.

The company now expects to make 300 billion yen ($2.76 billion) in operating profit, up 15.4% from previous forecasts. Total profit is expected to rise to 210 billion yen ($1.93 billion), up 16.7%. Net sales are expected to remain flat.

Nintendo Fiscal Year Q3'19 Earnings At-A-Glance

  • Net Sales - 570.78 billion yen ($5.3 billion, $3.8 billion after COGS), down 4.94% YoY
  • Operating Income - 168.7 billion yen ($1.55 billion), up 6.35% YoY
  • Total Profit - 134.37 billion yen ($1.23 billion), up 28.94% YoY
  • Digital Sales - 53.2 billion yen (489.55 million), 22.3% of total sales for Q3'19
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NEWS SOURCE:nintendo.co.jp

Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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