Japanese entertainment giant, Nintendo, has beat market expectations for its second quarter fiscal earnings results, driven by the continued success of its Switch console.
Nintendo notched revenues of 219.9 billion Japanese yen (US$1.9 billion), beating forecasts for 174 billion yen.
The company posted an operating profit of 23.7 billion yen, exceeding expectations for 19 billion yen.
The results are a welcome turnaround for the company, which posted a loss in the corresponding period last year.
Nintendo affirms that its latest earnings results come on the back of continued success for its flagship console, the Switch.
The company claims during the quarter it sold 2.9 million Switch units. The total number of Switch units sold worldwide has reportedly reached 7.63 million.
Following the positive results, Nintendo has increased its Switch sales forecast for the end of the fiscal year [ending March 2018] from 10 million consoles to 14 million.
Nintendo has also increased its fiscal year financial forecasts. The company’s net sales projection has jumped 28% from 750 billion yen to 960 billion yen. Nintendo’s operating profit forecast has also been amended to reflect an 84% jump, from 65 billion yen to 120 billion yen.
The entertainment giant has reportedly been pursuing a turnaround strategy, focused on the development of smartphone games in addition to its new Switch console.
Reports state the strategy has been largely successful, pocketing Nintendo 17.9 billion yen from its smart device and intellectual property-related divisions. The figure is whopping 426% year-on-year increase.
The company claims sales of popular game titles – such as “The Legend of Zelda: Breath of the Wild” and “Mario Kart 8 Deluxe” – have helped push sales of its Switch console.
Shares in Nintendo have soared 74% year-to-date.
