Nintendo Advances After Narrowing Loss With Lower Spend on Ads
Nintendo Co., the world’s largest maker of video-game machines, rose the most in a month in Osaka trading after the company narrowed its first-quarter loss on lower advertisement costs.
The shares rose as much as 3.3 percent, the biggest intraday gain since June 21, to 8,420 yen as of 9:29 a.m. That cut the Kyoto-based company’s year-to-date loss to 21 percent.
Nintendo narrowed the net loss to 17.2 billion yen ($220 million) in the three months ended June 30 from 25.5 billion yen a year earlier. The creator of the Mario character cut advertisement and promotion costs by half to 10 billion yen in the first quarter before introducing the 3DS XL handheld player equipped with larger screens on July 28 in Japan.
The earnings were “slightly positive,” Shunsuke Tsuchiya, a Tokyo-based analyst at Credit Suisse Group AG, said in a note to clients. Nintendo may be able to report an operating profit in the current period, he said.
First-quarter sales fell 9.7 percent to 84.8 billion yen, while Nintendo’s operating loss narrowed to 10.3 billion yen from 37.7 billion yen. The 3DS will be profitable starting this month, said Yasuhiro Minagawa, a spokesman.
Nintendo also retained its full-year sales target for the 3DS, which beams images in 3-D, at 18.5 million units and the Wii and Wii U consoles at 10.5 million units. The company is counting on the portable player and Wii U home console to recover from its first annual loss last fiscal year since it went public in 1962.
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