TOKYO, Oct 29 (Reuters) - Nintendo Co Ltd (7974.OS) reported a 59 percent decline in first-half profit on Thursday, hurt by sluggish demand for its flagship Wii videogame console and the strong yen, and it slashed its full-year forecast.
Nintendo, which faces stiff competition in the videogame market from Sony Corp (6758.T) and Microsoft Corp (MSFT.O), said operating profit was 104.4 billion yen ($1.2 billion) in the April-September half, compared with 252.2 billion yen a year earlier.
Nintendo cut its operating profit forecast for the year to March 2010 by nearly a quarter to 370 billion yen, ending a three-year run during which it booked a record profit on booming demand for its Wii console and DS portable device.
That compares with an average estimate of 442.8 billion yen in a poll of 25 analysts by Thomson Reuters I/B/E/S.
Demand for Nintendo products like the Wii has cooled as rival Sony has bolstered its line-up of console games, and as Apple Inc's (AAPL.O) iPhone has become a popular platform for handheld games.
Nintendo's earnings, like those of other Japanese exporters, have also been blunted by the stronger yen JPY=, which eats into overseas profits. Shares of Nintendo have declined about 28 percent so far this year, compared with a 14 percent rise in the Nikkei 225 .N225 share average. (Reporting by David Dolan)
http://www.nintendo.co.jp/ir/pdf/2009/091029e.pdf
Nintendo, which faces stiff competition in the videogame market from Sony Corp (6758.T) and Microsoft Corp (MSFT.O), said operating profit was 104.4 billion yen ($1.2 billion) in the April-September half, compared with 252.2 billion yen a year earlier.
Nintendo cut its operating profit forecast for the year to March 2010 by nearly a quarter to 370 billion yen, ending a three-year run during which it booked a record profit on booming demand for its Wii console and DS portable device.
That compares with an average estimate of 442.8 billion yen in a poll of 25 analysts by Thomson Reuters I/B/E/S.
Demand for Nintendo products like the Wii has cooled as rival Sony has bolstered its line-up of console games, and as Apple Inc's (AAPL.O) iPhone has become a popular platform for handheld games.
Nintendo's earnings, like those of other Japanese exporters, have also been blunted by the stronger yen JPY=, which eats into overseas profits. Shares of Nintendo have declined about 28 percent so far this year, compared with a 14 percent rise in the Nikkei 225 .N225 share average. (Reporting by David Dolan)
Code:
GROUP 2009 2008
Revenue Y548.06 bln Y836.88 bln
Operating Profit 104.36 bln 252.18 bln
Pretax Profit 110.61 bln 237.31 bln
Net Profit 69.49 bln 144.83 bln
Per share
Earnings 543.40 1132.46
Results are based on Japanese accounting standards.
Nintendo Co. also released the following forecasts:
GROUP Year Ending
Mar 2010
Revenue Y1.50 tln
Operating Profit 370.00 bln
Pretax Profit 370.00 bln
Net Profit 230.00 bln
Per share
Earnings 1798.50
Results are based on Japanese accounting standards.
Nintendo Co. (7974.TO)
GROUP Latest Revision Previous
For Year To Mar 2010 Plan
Midyear N/A 430.00
Year-end 690.00 840.00
Annual 960.00 1270.00
Results are based on Japanese accounting standards.
Nintendo Co. (7974.TO)
GROUP New Forecast Prior
For Year To Mar 2010 Forecast
Revenue Y1.50 tln Y1.80 tln
Operating Profit 370.00 bln 490.00 bln
Pretax Profit 370.00 bln 500.00 bln
Net Profit 230.00 bln 300.00 bln
Per share
Earnings 1798.50 2345.86
Results are based on Japanese accounting standards.http://www.nintendo.co.jp/ir/pdf/2009/091029e.pdf
