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Monday 7th November 2022

Nintendo are Expected to Post a 20% Rise in Profits for 2022
However, the forecast for 2023 is not so Good!

Nintendo Switch

2022:

Nintendo Co. is scheduled to report its second-quarter results on Tuesday. Here is what you need to know:

NET PROFIT FORECAST: Nintendo is expected to post a 20% rise in net profit to 95.05 billion yen ($648.3 million).
That compares with a net profit of Y79.09 billion a year earlier.
SALES REVENUE: Second-quarter revenue for 2022 have risen 17% from a year earlier 2021

?Think...Is this because of higher sales in the Nintendo Switch that year?

News & Current Affairs

--OUTLOOK: Nintendo projected sales revenue to fall 5.6% in 2023

WHAT TO WATCH:
--SWITCH SALES: As a shortage of semiconductors hindered production, first-quarter Switch console sales fell 23% from a year earlier to 3.43 million units.

Investors are focusing on any signs of strength in console sales on the back of the blockbuster action-shooting game "Splatoon 3" and ahead of the holiday-shopping season.

Business

OUTLOOK 2023:

Nintendo projected sales revenue to fall 5.6%
and net profit to drop 29%

Investors are focusing on any changes to the financial guidance that
management may make.

Net Profit MARGIN %:
Increased costs of parts and higher sales and administrative expenses will result in lower operating-profit margin

(Net Profit)
to 33.1% in its first quarter from 37.1% a year earlier. (2022)

Investors are focusing on any improvement in profitability as the company focuses on digital sales.

Questions: Ratio - Net Profit % Margin

OUTLOOK 2023:

Q1.
What Costs resulted in Lower operating profit/ Net profit margin?

The voting code 8525 0449 is valid now and expires in 2 days.

Questions in Menti

--Net Profit MARGIN:

(Net Profit) down to 33.1% in (2023)
4% drop
from 37.1% a year earlier. (2022)

Q2. What are Investors focusing on?

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