Nintendo has once again raised its annual earnings outlook for the financial year ending March 31st 2008.
The platform holder raised its operating profit forecast to 420 billion yen (£1.79 billion), 50 billion yen more than a previous estimate of 370 billion yen (£1.58 billion). The new forecast is an impressive 86 percent higher than the previous year's result.
The jump follows an increase in first half profit to 188.8 billion yen (£800 million).
Of course, Nintendo couldn't raise its profit forecasts if it didn't expect to sell more goods than it had previously. It has now raised its global sales target for the Wii by 1 million units to 17.5 million and its software sales goal by 35 percent to 97 million units. That follows the company saying it shipped 3.9 million Wiis globally in the last three months, bringing the total up to 13.2 million units.
Nintendo raised its net profit forecast up to 275 billion yen (£1.17 billion), 12.2 percent higher than previous forecasts and 58 percent higher than last year.
Shinkin Asset Management Co.'s Naoki Fujiwara, who helps oversee $3.2 billion (£1.56 billion), was pleased with the new forecast, saying, “With a lineup of killer games on the way, the business will be smooth sailing.”
The news is in stark contrast with Sony's games division, which posted an operating loss for July to September, but says it aims to make a profit or break even in the second fiscal half.
Nintendo is going from financial strength to financial strength at the moment, with the company recently having been able to claim the title of second biggest company in Japan and its value topping 10 trillion yen. Some analysts, however, predict that the profit-driving Wii will begin to lose ground to Sony by 2009.
Source: Bloomberg
The platform holder raised its operating profit forecast to 420 billion yen (£1.79 billion), 50 billion yen more than a previous estimate of 370 billion yen (£1.58 billion). The new forecast is an impressive 86 percent higher than the previous year's result.
The jump follows an increase in first half profit to 188.8 billion yen (£800 million).
Of course, Nintendo couldn't raise its profit forecasts if it didn't expect to sell more goods than it had previously. It has now raised its global sales target for the Wii by 1 million units to 17.5 million and its software sales goal by 35 percent to 97 million units. That follows the company saying it shipped 3.9 million Wiis globally in the last three months, bringing the total up to 13.2 million units.
Nintendo raised its net profit forecast up to 275 billion yen (£1.17 billion), 12.2 percent higher than previous forecasts and 58 percent higher than last year.
Shinkin Asset Management Co.'s Naoki Fujiwara, who helps oversee $3.2 billion (£1.56 billion), was pleased with the new forecast, saying, “With a lineup of killer games on the way, the business will be smooth sailing.”
The news is in stark contrast with Sony's games division, which posted an operating loss for July to September, but says it aims to make a profit or break even in the second fiscal half.
Nintendo is going from financial strength to financial strength at the moment, with the company recently having been able to claim the title of second biggest company in Japan and its value topping 10 trillion yen. Some analysts, however, predict that the profit-driving Wii will begin to lose ground to Sony by 2009.
Source: Bloomberg
Companies:
Nintendo
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