Nintendo boosts profit due to Switch Lite Sales
The company’s shares rose the most in more than six months after the earnings report
Stocks impacted: Nintendo Co Ltd (7974)
The Japanese gaming giant managed to more than double its profit in the three months to the end of September due to a boom in sales of Switch Lite consoles. Nintendo’s operating income was 66.8bn yen for the second quarter, compared to 30.9bn yen a year earlier. During the covered period, the company sold almost 5m units of the Switch device. Altogether, Nintendo sold 6.93 million Switch and Switch Lite game consoles during the six months ending September 30.
The Switch Lite hand-held consoles are a cheaper version of Nintendo's Switch devices, so demand for cheaper models was very robust. Despite positive results, Nintendo decided to keep its earnings forecasts unchanged, saying a lift would be premature. As such, th gaming giant expects its operating profit to come in at 260bn yen in the year to March 2020, and for revenue to be 1.25 trillion yen. After the release, the company’s shares jumped most in six months and extended the rally on Friday, adding nearly 7.5%.
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