Business / Corporate

Nintendo logs 36% annual jump in net profit on robust Switch sales

AFP-JIJI

Nintendo Co. on Thursday said annual net profit soared 36.1 percent thanks to the immense popularity of its Switch console and announced it was appointing a new president.

Shuntaro Furukawa, 46, who oversees marketing and other divisions at the Kyoto-based video game giant, will succeed 68-old-year Tatsumi Kimishima, who has headed up the company since 2015.

Nintendo has been on a winning streak, with its Switch flying off shelves since its launch last year.

The company said net profit for the year to March reached ¥139.6 billion ($1.27 billion), beating its own expectations despite repeatedly raised annual targets.

Operating profit saw a six-fold increase to ¥177.6 billion, while sales more than doubled from the previous year to ¥1.056 trillion.

Nintendo projected further improvements during the year to March 2019, forecasting annual net profit would improve 18.2 percent to ¥165 billion and operating profit would reach ¥225 billion, up 26.7 percent.

Annual sales are expected to reach ¥1.2 trillion, up 13.7 percent.

“The results for this fiscal year show a very positive trend in global hardware sales for Nintendo Switch, which sold a total of 15.05 million units during this fiscal year,” the company said in a statement.

“On the software end, Super Mario Odyssey has been a major hit with audiences worldwide, and sold 10.41 million units,” it said, adding that Switch software sales reached 63.51 million units this fiscal year.

Nintendo 3DS hardware sales remained solid even after the launch of Nintendo Switch, with sales during this fiscal year reaching 6.40 million units, the company said.