Nintendo reaffirms full-year guidance despite decline in quarterly profit

Videogame maker Nintendo reported a decline in second quarter profit, although it reiterated its full-year guidance.

In the three months to the end of September, the Japanese firm posted a 16.1% year-on-year decline in operating profit to 7.8bn yen (£42.3m) compared with analysts’ estimates for a 9.3bn yen figure.

Net profit tumbled 20% to 11.4bn yen, which analysts attributed to adverse currency movements. In 2014, the profits of the Kyoto-based group were boosted by the yen’s significant weakness against the dollar, a crucial factor for the company, which holds a large amount of dollar-denominated savings.

However, revenue rose 19% year-on-year to 2024.2bn yen, boosted by a sharp increase in sales of its new Super Mario game and 3DS handheld consoles.

In a statement released on Wednesday, Nintendo said it sold approximately 2.3m of its 3DS consoles between April and September and said it expected sales to continue to grow in the remainder of 2015.

The group, which appointed Tatsumi Kimishima in place of former chief executive Saturo Iwata when the latter died of cancer in July, added a gaming app for smartphones was scheduled for release, although it did not offer a detailed timeframe.

On Wednesday, Nintendo shares closed down 0.97% to 23,010.00 yen.