Nintendo Financials -- 'company ups profit estimate'

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http://cube.ign.com/articles/602/602093p1.html
Nintendo Financials
The company ups profit estimates.
by Juan Castro

April 6, 2005 - Nintendo has raised its net profit estimate by 17 percent on foreign exchange gains, according to Reuters. The company also said it would double its 2004 dividend and pay 270 yen per share due to the new estimate, which should post at 82 billion yen, or 757. 4 million dollar. However, Nintendo may end up with a 72.4 billion yen net profit, if a poll on Reuter's Estimates is to be believed. To get this figure, Reuters polled some 16 analysts.

After the original dividend report, which the Nihon Keizai newspaper published earlier today, Nintendo's shares received a jolt and closed with an increase of 3.6 percent at 12,250 yen on the Osaka Stock Exchange. The stock beat out the Nikkei average, which closed up 0.5 percent. The latest news puts Nintendo's dividend yield of 2.2 percent higher than Sony's and Microsoft's, at 0.6 percent and 1.3 percent respectively.

Nintendo has sold an impressive number of Nintendo DS units, its latest handheld gaming device that launched on November 21, 2004. Currently, it's on target to ship 6 million DS systems worldwide by the end of March. However, slow sales of DS software and of the Nintendo GameCube system forced the company to cut its operating profit forecast in January.
 
However, slow sales of DS software and of the Nintendo GameCube system forced the company to cut its operating profit forecast in January.

Funny.. normally they just blame the yen :D
 
So how come their profits went up if niether system is selling well? I wasn't aware Nintendo had started dissolving itself for cash like Sega.

BTW, percentage wise its dividends are higher than Sony or Microsoft, but how about the actual amounts?
 
they still had strong sellers .

Mario ds i believe is around 1.3or 1.4 world wide. Wario ware , yoshi touch and go are also around 1 million world wide .

Then the ds is actually making money per system sold .

Anyway i would say once more ds games start coming out they will have a easier time making money , there just aren't enough good games out yet for the system and its been around for what 4 months
 
Fox5 said:
BTW, percentage wise its dividends are higher than Sony or Microsoft, but how about the actual amounts?
I don't understand why the article relates Ninty to Sony and MS. None of these compnaies is solely reliant on the games industry for money. Sony has many fingers in many pies, MS gets nothing from gaming, and Ninty gets a some of cash from Pokemon cartoons and other non-game franchises. If they want to compare the gaming side of things, compare the takings of the gaming divisions for the companies.
 
Shifty Geezer said:
Fox5 said:
BTW, percentage wise its dividends are higher than Sony or Microsoft, but how about the actual amounts?
I don't understand why the article relates Ninty to Sony and MS. None of these compnaies is solely reliant on the games industry for money. Sony has many fingers in many pies, MS gets nothing from gaming, and Ninty gets a some of cash from Pokemon cartoons and other non-game franchises. If they want to compare the gaming side of things, compare the takings of the gaming divisions for the companies.

That is a gamer perspective but is short sighted. Remember, some people are INVESTORS. As any Nintendo fan on B3D will tell you Nintendo continually rolls in the cash (even when they tick hard core gamers off).

Another reason is the "big picture". If Nintendo's game division loses some money but they make a ton on their game spin offs (cartoons, trading cards, movies) would they not apply? They are all related. Similarly, but in another vien, if Sony loses money *overall* but the game division does well it is not a good thing because 1) it could mean tighter budgets that could hurt that division and 2) as the console division has carried Sony at times, if the company is losing money overall it means the bog picture for the company may not be so bright.

Anyhow, a financial forcast tends to be for investors and investors want to know how the stock is doing compared to competitors. You CANNOT buy stock in Sony's and MS's console divisions--they are a lump deal (I am sure you have seen the comments here about how MS investors must dislike seeing Xbox sales keep overall profits below what they could be). So if an investor is trying to evaluate how the gaming business is doing and what type of profits he can expect to make in that area he would want to know the overall forcast of each company. If he expects a big growth spurt a company whose income is tied closely to gaming may benefit more than a company with fingers in all kinds of pies.

I am sure others can add more reasons. Nothing unusual here.
 
That is a gamer perspective but is short sighted. Remember, some people are INVESTORS. As any Nintendo fan on B3D will tell you Nintendo continually rolls in the cash (even when they tick hard core gamers off).
Then why compare Nintendo to MS and Sony for comparative investments? They're not comparable companies in terms of products, and if all I want is investment advice, compare Ninty's 2.2% with other comparable stock price/dividend value companies.
 
Funny.. normally they just blame the yen

They do when the yen is actually to blame. Otherwise they blame whatever else is to blame, its a common practice amongst humans.. :LOL:

So how come their profits went up if niether system is selling well? I wasn't aware Nintendo had started dissolving itself for cash like Sega.

What do you mean neither system is selling well? Profits are up, as the article clearly suggests, because DS is selling extremely well and so are Nintendo's own DS games.
 
mech said:
However, slow sales of DS software and of the Nintendo GameCube system forced the company to cut its operating profit forecast in January.

Funny.. normally they just blame the yen :D

Blaming someone else not solely restricted to Nintendo. Take a look http://www.playmoreconsoles.com/fullnews.asp?NewsID=5554

http://www.dfcint.com/news/prmar2205.html

Mega stats :oops: :-

http://www.playmoreconsoles.com/blog.asp?UserID=66

http://www.playmoreconsoles.com/fullnews.asp?NewsID=5592

Who buys more games per capita and plays most? http://www.playmoreconsoles.com/fullnews.asp?NewsID=5471

Not related but all I can say is, Go Nintendo USA! Are you watching Nintendo Europe? http://www.playmoreconsoles.com/fullnews.asp?NewsID=5536

That doesn't include France for that matter. They know a good game and will promote http://gamelayer.dreamhost.com/junk/RE30sFr.mpg

Can't say I remember UK promo! Maybe someone has link?
 
Shifty Geezer said:
That is a gamer perspective but is short sighted. Remember, some people are INVESTORS. As any Nintendo fan on B3D will tell you Nintendo continually rolls in the cash (even when they tick hard core gamers off).
Then why compare Nintendo to MS and Sony for comparative investments? They're not comparable companies in terms of products, and if all I want is investment advice, compare Ninty's 2.2% with other comparable stock price/dividend value companies.

That's true Shifty, but you have to remember EVERY company is comparable when it comes to investing, as all you are looking for is which company is likely to give you the best return.

Maybe how Nintendo is doing would be less relevent if we were talking about Microsoft, since their core business is elsewhere, but talking about how Microsoft and Sony are doing I feel is quite relevent for discussion of Nintendo, since they both compete with it's core product offering.

That being said though, yeah I can't understand what dividend yields have to do with anything. I agree that comparison just seemed to be thrown in there for the sake of mentioning the other two console makers.
 
Heh, to the guys who replied to me - you don't know the running gag about how every financial statement, Nintendo blames the yen for not making massive profits? *shrug* Guess not :)
 
jvd said:
they still had strong sellers .

Mario ds i believe is around 1.3or 1.4 world wide. Wario ware , yoshi touch and go are also around 1 million world wide .

Then the ds is actually making money per system sold .

Anyway i would say once more ds games start coming out they will have a easier time making money , there just aren't enough good games out yet for the system and its been around for what 4 months

Mario DS is actually over the 2 million mark with the UK, EU, & PAL releases jvd. (or extremely close) The SP & its software is still selling in quantity, (the Minnish Cap, KH:COM, etc.) DS software projections had to be scaled back due to several delays, Nintendogs being the most notable. The DS making money per unit sold? Easily, as this was confirmed some time ago. Not enough good games out currently? Completely agree.
 
mech said:
Heh, to the guys who replied to me - you don't know the running gag about how every financial statement, Nintendo blames the yen for not making massive profits? *shrug* Guess not :)

A running gag is MS saying they're not a monopoly or Dell saying customers want INTEL inside only. Then both claiming all decisions are for customers and industries benefit not their own! :!:
 
Li Mu Bai said:
jvd said:
they still had strong sellers .

Mario ds i believe is around 1.3or 1.4 world wide. Wario ware , yoshi touch and go are also around 1 million world wide .

Then the ds is actually making money per system sold .

Anyway i would say once more ds games start coming out they will have a easier time making money , there just aren't enough good games out yet for the system and its been around for what 4 months

Mario DS is actually over the 2 million mark with the UK, EU, & PAL releases jvd. (or extremely close) The SP & its software is still selling in quantity, (the Minnish Cap, KH:COM, etc.) DS software projections had to be scaled back due to several delays, Nintendogs being the most notable. The DS making money per unit sold? Easily, as this was confirmed some time ago. Not enough good games out currently? Completely agree.

Makes you wonder why people are buying the system if there aren't many good games out? Built-in audience...?
 
Li Mu Bai said:
Teasy said:
Since when does not enough mean none?

Exactly, I did not mean "none" existed at all for the system.

Doesn't matter - the point still stands. The DS was meant to be an additive product for Nintendo's portfolio, and while the hardware has sold well, there is little to suggest it has achieved it's goal (and the software released thus far demonstrates this). Don't get me wrong, if the DS sells as many units as the GBA (which is alot!) - cheers, it's a huge success, but that alone demonstrates that it has not expanded Nintendo's core handheld market.
 
The DS was meant to be an additive product for Nintendo's portfolio, and while the hardware has sold well, there is little to suggest it has achieved it's goal (and the software released thus far demonstrates this).

DS's initial goal was to sell 5 million units by the end of March, which it surpassed by 1 million units. That has certainly strengthened Nintendo's product line and is the only goal that really matters this early in the systems life.
 
If I require 100 of my units of x to be sold to reach my goal, but tell the public that it is my target to sell 50 - does it make my situation all the better if I manage to sell 60?

*hint*
 
Well that's all very nice Phil but it has absolutely nothing to do with Nintendo DS. 5 million units in 4 months is a very ambitious goal, never mind 6 million (it took record breaking sales in some countries to reach that number).
 
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