Nintendo FY3/2020 Q1 Earnings Release, Switch HW 2.13M, Europe/Other SW/HW now split

ggx2ac

Sales Heaven or Sales Hell?
Member
Oct 25, 2017
2,304
Note: M = Million (or rather 10^6)

1st Quarter Earnings Release: https://www.nintendo.co.jp/ir/pdf/2019/190730e.pdf

Code:
+--------------------------------------------------------------------------+
|                 |  This Quarter | FY Cumulative          |  FY Forecast  |
+--------------------------------------------------------------------------+
| Net Sales       |   ¥172,111M   |  ¥172,111M    (~$1.58B)| ¥1,250,000M   |
| Operating Income|    ¥27,428M   |    ¥27,428M    (~$252M)|   ¥260,000M   |
| Net Profit      |    ¥16,604M   |    ¥16,604M    (~$152M)|   ¥180,000M   |
+--------------------------------------------------------------------------+
Capital Adequacy Ratio: 84.1%
Current Assets: ¥1,195,534 million
Current Liabilities: ¥222,247 million
Cash and deposits: ¥740,353 million
Shareholder's equity: ¥1,365,587 million
Inventories: ¥133,156 million

Hardware sales units: https://www.nintendo.co.jp/ir/en/finance/hard_soft/index.html

Code:
+---------------------------------------------------------------------------------+
|      Switch     |  This Quarter | FY Cumulative |      LTD      |  FY Forecast  |
+---------------------------------------------------------------------------------+
| Hardware (units)|      2.13M    |     2.13M    |     36.87M    |      18.0M    |
| Software (units)|     22.62M    |     22.62M    |    210.13M    |     125.0M    |
+---------------------------------------------------------------------------------+
(Software sales units include both packaged and downloadable versions of software.)
###
+---------------------------------------------------------------------------------+
|       3DS       |  This Quarter | FY Cumulative |      LTD      |  FY Forecast  |
+---------------------------------------------------------------------------------+
| Hardware (units)|      0.2M    |      0.2M    |     75.28M    |       1.0M    |
| Software (units)|      1.48M    |     1.48M    |    379.6M    |      5.0M    |
+---------------------------------------------------------------------------------+
(Software sales units include both packaged and downloadable versions of software.)
###
+------------------------------------------------------------------------+
|                                       |  This Quarter  | FY Cumulative |
+------------------------------------------------------------------------+
| Smart devices, IP related income, etc.|    ¥10,005M    |   ¥10,005M    |
+------------------------------------------------------------------------+
(Includes income from smart-device content and royalty income.)
Supplemental information:

Code:
+--------------------------------------------------------------------------+
|                                          | This Quarter  | FY Cumulative |
+--------------------------------------------------------------------------+
| Proportion of overseas sales             |     76.5%     |     76.5%     |
+--------------------------------------------------------------------------+
(※ Proportion of overseas(outside of Japan) sales to total sales)
+--------------------------------------------------------------------------+
| Proportion of hardware sales             |     50.5%     |     50.5%     |
+--------------------------------------------------------------------------+
(※ Proportion of hardware(including accessories) sales to total
dedicated videogame platform sales)
+--------------------------------------------------------------------------+
| Proportion of first party software sales |     74.1%     |     74.1%     |
+--------------------------------------------------------------------------+
(※ Proportion of first-party software sales to total dedicated video
game software sales)
+--------------------------------------------------------------------------+
| Digital Sales                            |    ¥30.6B     |    ¥30.6B     |
+--------------------------------------------------------------------------+
(※ Digital sales include downloadable versions of packaged software,
download-only software, add-on content and Nintendo Switch Online.)
+--------------------------------------------------------------------------+
| Proportion of Digital Sales              |     38.3%     |     38.3%     |
+--------------------------------------------------------------------------+
(※ Proportion of digital sales to total dedicated
video game software sales )
Code:
+---------------------------------------------------+
|Switch HW Sell-In WW LTD |    Units   | Percentage |
+---------------------------------------------------+
| Japan                   |    8.76M   |     24%    |
| The Americas            |   14.83M   |     40%    |
| Other                   |    3.69M   |     10%    |
| Europe                  |     9.6M   |     26%    |
+---------------------------------------------------+
###
+---------------------------------------------------+
|Switch SW Sell-In WW LTD |    Units   | Percentage |
+---------------------------------------------------+
| Japan                   |   39.05M   |     19%    |
| The Americas            |   94.47M   |     45%    |
| Other                   |   14.15M   |      7%    |
| Europe                  |   62.46M   |     29%    |
+---------------------------------------------------+
###
+----------------------------------------------------------------+
| New Titles (Switch)     | This Quarter  | FY Cumulative|  LTD  |
+----------------------------------------------------------------+
| Japan                   |      48       |      48      |  346  |
| The Americas            |      65       |      65      |  450  |
| Other                   |      69       |      69      |  448  |
+----------------------------------------------------------------+
Code:
+-------------------------------------------------------------------------------------------------+
| Title                                   |  FY Japan   | FY Overseas |  FY Global  | Global LTD  |
+-------------------------------------------------------------------------------------------------+
| Super Mario Maker 2                     |    0.52M    |    1.9M    |    2.42M    |    2.42M    |
| Mario Kart 8 Deluxe                     |    0.17M    |    1.03M    |     1.2M    |   17.89M    |
+---------------------------------------------------------------------------------------------------+
Top selling title sales units as of June 30th, 2019:

https://www.nintendo.co.jp/ir/en/finance/software/index.html

Code:
+----------------------------------------------------------------------+
| Switch - Top Selling Titles (units)      | This Quarter|     LTD     |
+----------------------------------------------------------------------+
| Mario Kart 8 Deluxe                      |    1.2M    |   17.89M    |
| Super Mario Odyssey                      |    0.5M    |   14.94M    |
| Super Smash Bros. Ultimate               |   0.92M    |   14.73M    |
| The Legend of Zelda: Breath of the Wild  |     0.84M    |   13.61M    |
| Pokémon Let's Go Pikachu/Eevee           |    0.35M    |    10.98M    |
| Splatoon 2                               |     0.32M    |    9.02M    |
| Super Mario Party                        |     0.59M    |     6.99M    |
| New Super Mario Bros. U Deluxe             |    0.79M    |    4.1M    |
| 1-2-Switch                               |    0.04M    |    3.01M    |
| Mario Tennis Aces                        |    0.11M    |    2.75M    |
+----------------------------------------------------------------------+
During the first quarter of this period (April through June 2019), for Nintendo Switch, Super Mario Maker 2 released in June and has
gotten off to a good start with 2.42 million units sold. In addition, sales of titles released in previous fiscal years and titles released by
other software publishers continued to grow at a steady pace, including Mario Kart 8 Deluxe, which sold 1.2 million units (17.89
million units on a cumulative basis). As a result, hardware and software sales reached 2.13 million units (13.2% increase on a year-on-
year basis) and 22.62 million units (25.9% increase on a year-on-year basis) respectively.
For Nintendo 3DS, hardware sales totaled 0.2 million units (44.9% decrease on a year-on-year basis), while software sales came to
1.48 million units (49.7% decrease on a year-on-year basis).
Turning to our digital business for dedicated video game platforms, sales of downloadable versions of packaged software and
download-only software for Nintendo Switch showed particularly steady growth, bringing digital sales to 30.6 billion yen (65.3%
increase on a year-on-year basis).
For the mobile business, many consumers continue to enjoy titles that were released in previous years, and our mobile, IP related
income reached 10 billion yen (10.0% increase on a year-on-year basis).
In total, net sales reached 172.1 billion yen (including overseas sales of 131.7 billion yen, or 76.5% of the total sales). Operating
profit came to 27.4 billion yen. As a result of foreign exchange losses of 12 billion yen and other factors, ordinary profit came to 22.2
billion yen and profit attributable to owners of parent totaled 16.6 billion yen.
 
Last edited:
Oct 31, 2017
1,157
Congrats to Nintendo.

Edit: I just noticed numbers are quite lower than PS4’s. Still impressive tho’ but I thought they would be more.
 

Lichtsang

Member
Jan 2, 2018
3,592
We will see Mario Kart 8 Deluxe (on it's own, without the Wii U version of 8) overtake Mario Kart 7 by the time of the next Earnings Release.
 

ArmGunar

Member
Oct 30, 2017
2,520
A bit disappointing these HW numbers
But they will fully recover during Q2 and Q3 this FY for sure
 

Ruslnis

Member
Feb 26, 2018
2,025
Like last ps4 HW numbers showed - USA and Japan is not the whole world
Anyway good numbers with no SW heavy hitters. New HW revisions gonna boost the numbers
 
Oct 25, 2017
2,306
We only have data for the US and Japan.
And shipments or not, if shipments are that low despite higher sales it means they overshipped in the past.
All consoles over ship. There’d be constant stock problems if they didn’t. This just means Nintendo withheld supply to clear out stock before the revisions.
 

Simba1

Member
Dec 5, 2017
2,266
We only have data for the US and Japan.
And shipments or not, if shipments are that low despite higher sales it means they overshipped in the past.
Or thats most likely case, they are clearing stocs for upcoming revisions.
Only US and Japan are like around 70% of WW sales for Switch.
 

Onix555

Member
Apr 23, 2019
339
UK
People calling it disappointing despite them making mega profits on each unit sold, as well as selling an immense amount of software.

lol
 

bane833

Member
Nov 3, 2017
3,440
I sincerely doubt Switch is tanking in Europe and rest of the world when the software sales data suggests otherwise.

It is quite possible they overshipped last year though.
Nobody said anything about tanking. But they clearly have not sold as many units as expected otherwise their shipments wouldn't be that low.
 

Dwebble

Avenger
Oct 25, 2017
3,520
Almost a total absence of big software for the quarter, and with revisions on the way. I see no surprises here.

Software strength is still bonkers.
 

Atram

Member
Oct 25, 2017
354
Germany
Note: M = Million (or rather 10^6)

1st Quarter Earnings Release: https://www.nintendo.co.jp/ir/pdf/2019/190730e.pdf

Code:
+--------------------------------------------------------------------------+
|                 |  This Quarter | FY Cumulative          |  FY Forecast  |
+--------------------------------------------------------------------------+
| Net Sales       |   ¥172,111M   |  ¥172,111M    (~$x.xxB)| ¥1,250,000M   |
| Operating Income|   ¥27,428M   |  ¥27,428M    (~$x.xxB)|   ¥260,000M   |
| Net Profit      |   ¥16,604M   |  ¥16,604M    (~$x.xxB)|   ¥180,000M   |
+--------------------------------------------------------------------------+
Capital Adequacy Ratio: %
Current Assets: ¥ million
Current Liabilities: ¥ million
Cash and deposits: ¥ million
Shareholder's equity: ¥ million
Inventories: ¥ million

Hardware sales units: https://www.nintendo.co.jp/ir/en/finance/hard_soft/index.html

Code:
+---------------------------------------------------------------------------------+
|      Switch     |  This Quarter | FY Cumulative |      LTD      |  FY Forecast  |
+---------------------------------------------------------------------------------+
| Hardware (units)|      2.13M    |     2.13M    |     36.87M    |      18.0M    |
| Software (units)|     22.62M    |     22.62M    |    210.13M    |     125.0M    |
+---------------------------------------------------------------------------------+
(Software sales units include both packaged and downloadable versions of software.)
###
+---------------------------------------------------------------------------------+
|       3DS       |  This Quarter | FY Cumulative |      LTD      |  FY Forecast  |
+---------------------------------------------------------------------------------+
| Hardware (units)|      0.2M    |      0.2M    |     75.28M    |       1.0M    |
| Software (units)|      1.48M    |     1.48M    |    379.6M    |      5.0M    |
+---------------------------------------------------------------------------------+
(Software sales units include both packaged and downloadable versions of software.)
###
+------------------------------------------------------------------------+
|                                       |  This Quarter  | FY Cumulative |
+------------------------------------------------------------------------+
| Smart devices, IP related income, etc.|    ¥10,005M    |   ¥10,005M    |
+------------------------------------------------------------------------+
(Includes income from smart-device content and royalty income.)
Supplemental information:

Code:
+--------------------------------------------------------------------------+
|                                          | This Quarter  | FY Cumulative |
+--------------------------------------------------------------------------+
| Proportion of overseas sales             |     76.5%     |     76.5%     |
+--------------------------------------------------------------------------+
(※ Proportion of overseas(outside of Japan) sales to total sales)
+--------------------------------------------------------------------------+
| Proportion of hardware sales             |     50.5%     |     50.5%     |
+--------------------------------------------------------------------------+
(※ Proportion of hardware(including accessories) sales to total
dedicated videogame platform sales)
+--------------------------------------------------------------------------+
| Proportion of first party software sales |     74.1%     |     74.1%     |
+--------------------------------------------------------------------------+
(※ Proportion of first-party software sales to total dedicated video
game software sales)
+--------------------------------------------------------------------------+
| Digital Sales                            |    ¥30.6B     |    ¥30.6B     |
+--------------------------------------------------------------------------+
(※ Digital sales include downloadable versions of packaged software,
download-only software, add-on content and Nintendo Switch Online.)
+--------------------------------------------------------------------------+
| Proportion of Digital Sales              |     38.3%     |     38.3%     |
+--------------------------------------------------------------------------+
(※ Proportion of digital sales to total dedicated
video game software sales )


Code:
+-------------------------------------------------------------------------------------------------+
| Title                                   |  FY Japan   | FY Overseas |  FY Global  | Global LTD  |
+-------------------------------------------------------------------------------------------------+
| Super Mario Maker 2                     |    0.52M    |    1.9M    |    2.42M    |    2.42M    |
| Mario Kart 8 Deluxe                     |    0.17M    |    1.03M    |     1.2M    |   17.89M    |
+---------------------------------------------------------------------------------------------------+
Top selling title sales units as of July 30th, 2019:

https://www.nintendo.co.jp/ir/en/finance/software/index.html
Nobody said anything about tanking. But they clearly have not sold as many units as expected otherwise their shipments wouldn't be that low.
Clearing Stock for the Revision and Lite for Q2. Shippmets will be Up in Q2 by a huge margin.
 

fiendcode

Member
Oct 26, 2017
10,781
We only have data for the US and Japan.
And shipments or not, if shipments are that low despite higher sales it means they overshipped in the past.
Shipments have been well behind sales for 2 quarters now, they're channel clearing as analysts suspected months ago.

We also have sellthrough data for Spain this year and it's the same story as the US and Japan.
 

KillstealWolf

Avenger
Oct 27, 2017
4,712
Pokemon X and Y are still outpacing Let's Go (X and Y had sold 11.6 million by April 2014, so over 5 months) so all is right in the world.
 

bane833

Member
Nov 3, 2017
3,440
Clearing Stock for the Revision and Lite for Q2. Shippmets will be Up in Q2 by a huge margin.
Of course shipments will be up, would be pretty bad if they weren't. Doesn't change that they either greatly overshipped in the past or are not selling through as much as expected.