Friday, July 30, 2010

Nintendo Reports Quarterly Loss

Nintendo reported its first quarterly loss in more than two years due to a strong Yen and lower demand for DS players. The net loss was 25.2 billion yen ($291 million) in the three months ended June, compared with a 42.3 billion yen profit a year earlier. The game maker said it booked a foreign currency-related one-time loss of 70.5 billion yen.
The company yesterday said the euro weakened to 107.81 yen in the quarter, from 124.92 yen as of March 31, while the dollar fell to 88.48 yen from 93.04 yen. A stronger Japanese currency reduces the value of Nintendo’s overseas sales and assets. Nintendo maintained its full-year exchange-rate estimate at 120 yen for the euro and 95 yen for the dollar.
First-quarter sales of DS hardware dropped 47 percent to 3.15 million players, while those of software dropped 23 percent to 22.4 million units, the company said. Nintendo released 168 titles for the handheld player in the period, compared with 278 games a year earlier.
Nintendo’s stock price is down 23 percent this year, while the benchmark Nikkei 225 has declined 14 percent.
For the full fiscal year ending March 2011, Nintendo continues to forecast a net profit of 200 billion yen and an operating profit of 320 billion yen on revenue of 1.4 trillion yen.