Nintendo quarterly profit falls 15pc
Published 28/10/2010 | 12:38
Nintendo, the world’s largest maker of video-game players, had a 15pc drop in second- quarter profit after demand for the Wii console and DS handheld players slumped.
Net income fell to 23.2 billion yen (€206m) in the three months ended in September, matching the average of three analyst estimates compiled by Bloomberg.
The figures were calculated by subtracting first-quarter numbers from the first- half results released by the company today.
Nintendo is forecasting its annual profit to drop to the lowest level in six years as the number of Wii consoles are projected to fall for a second year.
President Satoru Iwata plans to introduce a 3D model of the handheld DS this fiscal year and a heart-rate-tracking “Vitality Sensor” accessory for the Wii to revive earnings growth.
The shares declined 0.7pc to 21,290 yen at the end of trading in Japan. The earnings were announced after the stock market closed for trading.
Operating profit, or sales minus the cost of goods sold and administrative expenses, fell 52pc to 30.9 billion yen in the quarter, as revenue declined 41pc to 174.5 billion yen, according to the calculations. That missed the 176.8 billion yen estimated by the analysts.
Ken Toyoda, a company spokesman, declined to comment on the calculations.