Nintendo Sales and Profit Skyrocket; Wii Shipments at Nearly 25 Million

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Nintendo Sales and Profit Skyrocket; Wii Shipments at Nearly 25 Million
Nintendo's success has truly been incredible. In the fiscal year just ended, the company posted sales of more than $16 billion as Wii shipment have approached 25 million worldwide.
Posted by James Brightman on Thursday, April 24, 2008


Nintendo today announced its earnings for the fiscal year ended March 31, 2008, revealing the company's continued success with record revenues and profits. Sales jumped 73 percent to more than 1.67 trillion yen ($16.07 billion) while operating profits soared 115.6 percent to more than 487 billion yen ($4.69 billion). Group net profit rose 47 percent to 257.34 billion yen ($2.5 billion).

For this past fiscal year Nintendo shipped 18.61 million Wii console to its distributors and retail customers across the globe; since the launch of the console in November 2006, Nintendo has shipped 24.45 million worldwide. In addition, for the fiscal year that just began on April 1, Nintendo now forecasts global Wii console shipments to reach 25 million, which would bring the total to nearly 50 million at this time next year.

Nintendo also said that it shipped 119.6 million software units for the Wii in the last fiscal year. For fiscal year 2009 the company expects to ship 177 million Wii software units. The Wii has seen a tie ratio of 6.07 games per system worldwide through March 31.

As for Nintendo's handheld business, the ubiquitous DS shipped an incredible 30.31 million units worldwide in the last fiscal year, bringing the total worldwide shipment to 70.6 million. During the current fiscal year, Nintendo forecasts shipments of an additional 28 million Nintendo DS units. In addition, Nintendo said it shipped 185.62 million DS software units in fiscal 2008 and the company is anticipating shipment of another 187 million units in fiscal 2009. Life-to-date the tie ratio for the DS has been 5.24 games per system worldwide.

"Nintendo's strategy is to accelerate the current sales momentum from 'must-have for every family' to 'must-have for everyone' by continuously introducing new and unique software and introducing new services which take advantage of its expanded installed base," the company stated.

Nintendo thoroughly expects to keep its momentum throughout this year and into 2009. For the fiscal year ending next March, the company is forecasting a 26.3 percent increase in net profit to 325 billion yen ($3.15 billion), a 7.6 increase in net sales to 1.8 trillion yen, and an 8.8 percent rise in operating profit to 530 billion yen ($5.14 billion).

In addition to its fiscal results, Nintendo today also announced a full-year dividend for its shareholders of 1,260 yen per share (including the interim dividend of 140 yen already paid). This represents an increase of 570 yen over the annual dividend of 690 yen paid one year ago.