Nintendo Earnings Rise on Sale of Stake in Seattle Mariners
October 26 2016 - 4:50AM
Dow Jones News
TOKYO—Nintendo Co.'s second-quarter earnings rose sharply from a
year earlier, as the recent sale of its controlling interest in the
Seattle Mariners baseball team helped to offset its struggling
videogame console.
The Kyoto-based company said its net income for the quarter rose
to 62.8 billion yen ($603 million) from ¥ 3.2 billion a year
earlier, thanks in large part to a one-time gain from the sale of
its majority stake in First Avenue Entertainment, the operator of
the Mariners.
"Poké mon Go," a smash-hit smartphone game that was rolled out
in July, also lifted Nintendo's bottom line during the first half
of the current fiscal year, which ends in March. The company said
gains from investments in its affiliate companies, including Poké
mon Co.—which made the smartphone game with Alphabet Inc. spinout
Niantic Inc.—stood at ¥ 12 billion.
Nintendo recorded an operating loss of ¥ 812 million, reversing
from an operating profit of ¥ 7.8 billion a year earlier, as its
flagship Wii U videogame console proved to be unpopular with
consumers. It hopes to revive sales with its next platform, called
Switch, which is set to launch in March.
For the fiscal year ending March, Nintendo expects a net profit
of ¥ 50 billion and an operating profit of ¥ 30 billion on revenue
of ¥ 470 billion. Previously, it forecast a net profit of ¥ 35
billion, an operating profit of ¥ 45 billion and revenue of ¥ 500
billion.
Write to Takashi Mochizuki at takashi.mochizuki@wsj.com
(END) Dow Jones Newswires
October 26, 2016 04:35 ET (08:35 GMT)
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