Outline of consolidated financial results for the nine months ended December 31, 2015 and consolidated earnings forecast for the fiscal year ending March 31, 2016.
Outline | Presentation by the President | Q & A
This outline is based on the documents “Earnings Release,” and “Supplementary Information about Earnings Release” for the 3rd quarter of the fiscal year ending March 31, 2016.
- 1. Briefing of consolidated financial results for the nine months ended December 31, 2015
-
A. Consolidated operating results for the nine months ended December 31, 2014 and 2015
Nine months ended
Dec. 31, 2014Nine months ended
Dec. 31, 2015Comparison Net Sales 442.9 billion yen 425.6 billion yen -3.9 % Gross Profit 172.9 billion yen 183.2 billion yen 6.0 % (Gross Profit Ratio) (39.0 %) (43.1 %) Operating Income 31.6 billion yen 42.4 billion yen 34.4 % (Operating Income Ratio) (7.1 %) (10.0 %) Ordinary Income 92.3 billion yen 55.2 billion yen -40.1 % (Ordinary Income Ratio) (20.9 %) (13.0 %) Profit Attributable to
Owners of Parent59.5 billion yen 40.5 billion yen -31.9 % (Profit Attributable to
Owners of Parent Ratio)(13.4 %) (9.5 %)
(Net sales)
For Wii U, sales units of Wii U hardware and software increased as Splatoon and Super Mario Maker, which were released during this period became blockbusters, while evergreen titles such as Mario Kart 8 released in the previous period continued to show steady sales.
With respect to Nintendo 3DS, Animal Crossing: Happy Home Designer, which was released this period, became a hit, while in the overseas markets, evergreen titles such as Mario Kart 7 continued to show steady sales. In the Japanese market, titles such as Rhythm Tengoku (Japanese title) and Fire Emblem Fates: Birthright/Conquest gained popularity. However, compared to the same period of the previous fiscal year, which enjoyed releases of huge hit titles such as Pokémon Omega Ruby/Pokémon Alpha Sapphire and Super Smash Bros. for Nintendo 3DS, sales units of the Nintendo 3DS software were down. Nintendo 3DS hardware unit sales also decreased.
As a result, net sales were down compared to the same period of the previous fiscal year despite an increase in the sales of amiibo which has an extensive lineup, and an increase in total download sales which include additional download content for Nintendo 3DS and Wii U software titles.
(Gross profit ratio)
The gross profit ratio compared to the same period of the previous fiscal year increased by 4.1% to 43.1% mainly because the applied period-average exchange rate against the U.S. dollar dropped by close to 15 Japanese yen.
(Operating income)
As a result of an increase in gross profit by 10.3 billion yen and efforts made to balance revenue and expenses, operating income was 42.4 billion yen.
(Ordinary income)
Even though operating income increased by 10.8 billion yen compared to the same period of the previous fiscal year, mainly due to a decrease of 49.2 billion yen in foreign exchange gains included in non-operating income, ordinary income was 55.2 billion yen.
- 2. Briefing of consolidated earnings forecast for the fiscal year ending March 31, 2016
For Nintendo 3DS, we will globally release a special edition hardware pre-installed with Pokémon title(s) from the original Pokémon series in February. We will also release new titles for Nintendo 3DS such as Mario & Sonic at the Rio 2016 Olympic Games. For Wii U, we will strive to maintain the attention level of Splatoon and Super Mario Maker, which are continuing to show steady sales, while introducing new titles such as The Legend of Zelda: Twilight Princess HD. Meanwhile, for amiibo, we will further expand the product lineup in order to maintain momentum. At the same time, we will aim to expand sales by offering new gaming experiences with the use of amiibo. In addition, the first application for smart devices, Miitomo, is scheduled for release.
As a result, there are no revisions to the consolidated financial forecast announced on May 7, 2015.
Forecasts referred to above are based upon management's assumptions with information available at the time the announcement was made and, therefore, involve known and unknown risks and uncertainties. Please note that such risks and uncertainties may cause actual results to be materially different from the forecasts (earnings forecast, dividend forecast and other forecasts).
Outline | Presentation by the President | Q & A
