Business / Corporate

Nintendo falls into red in first quarter, but keeps full-year profit forecast

Kyodo

Nintendo Co. on Wednesday posted a group net loss of ¥24.53 billion ($232.1 million) for the April-June quarter due to the strong yen and sluggish Wii U game console sales, but maintained its forecast of more than doubling its full-year net profit.

Nintendo, one of the developers of the smash-hit “Pokemon Go” mobile game, had already factored in profit from sales of its wearable devices related to the popular augmented-reality game released earlier this month.

The game was jointly developed with Pokemon Co., in which Nintendo owns a 32 percent stake, and Niantic Inc., a San Francisco-based game maker spun off from Google Inc.

The global frenzy over the game has raised expectations for sharp business growth at Nintendo, causing its share price to more than double at one point last week.

For the fiscal 2016 first quarter, Nintendo booked a consolidated operating loss of ¥5.13 billion, compared to a profit of ¥1.15 billion a year earlier, on sales of ¥61.97 billion, down 31.3 percent.

The ¥24.53 billion net loss compared to a profit of ¥8.28 billion logged a year earlier.

For the full year through next March, Nintendo projects an operating profit of ¥45 billion, up 36.9 percent from the past year, on sales of ¥500 billion, down 0.9 percent.

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