Nintendo Ltd/ADR (OTC: NTDOY) reported its fiscal year-ending earnings April 27 that were boosted by strong sales of its hybrid gaming console Switch. Put into context against prior year earnings, the results show a notable turnaround in the business but are still notably short of peak earnings.
Nintendo's operating profit rose by a factor of more than six to $1.6 billion for its fiscal year ending March 31, Statista said. Revenue for the fiscal year also more than doubled from the prior year to $9.5 billion. Encouragingly, the Japanese company guided its current fiscal year's profit to rise another 25 percent.
Why It's Important
Nintendo's operating profit was in the red throughout 2012, 2013 and 2014 before rebounding. The 2017 release of the Switch console has driven recent momentum, as the company has already sold 17.8 million Switch units and expects to sell another 20 million units through March 2019.
The hype surrounding the Switch will likely continue in the near-term, but it remains unclear if it can propel Nintendo's operating profit to its peak 2009 level of more than $5 billion, Statista said. Current estimates for slightly more than $2 billion in profit in 2019 imply a long road to matching peak profits.
You will find more infographics at Statista.
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