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Forums - Nintendo - Nintendo made profit of $920m in FY2016.

sethnintendo on 27 April 2017
Kerotan said:
sethnintendo said:

Still got a pretty good return on investment from the 125 million purchase of 50% stake in 92 to getting 661 million selling 40% stake of their 50 leaving them with still 10% in Mariners.  That 10% stake will be worth more than their initial investment.

Not if you factor in inflation but yeah still a great investment 

Yea inflation is a bitch but that is what happens when you print money out of thin air.  They sold at a pretty good time though.  The Mariners just landed a huge TV contract deal which inflated their value.  Seems like now is a good time to cash out on sports teams if you bought them in the 90s because they are way up due to TV contract deals.  Just look at the Clippers.  That old guy who made some racy remarks about blacks made a killing being forced to sell his team (which finally started getting good after being shit for over a decade, guess those top picks finally meshed into a semi cohesive team).  I'm sure he is crying all the way to the bank.

Anyways, I don't think they could have waited for a better time considering the Mariners value went sky high with that TV deal. 



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specialk on 27 April 2017
ArchangelMadzz said:

I'd be very surpsied if they reach $900 million again this fiscal year. Even with pokemon go half of this was down to selling a baseball team. 

But hey we'll see. 

They almost assuredly won't. They're forecasting less than half of this for this year.

That's pricing in an aggressive increase in sales and operating profit though. So it's still optimistic news. 



specialk on 27 April 2017
sethnintendo said:

Yea inflation is a bitch but that is what happens when you print money out of thin air.  They sold at a pretty good time though.  The Mariners just landed a huge TV contract deal which inflated their value.  Seems like now is a good time to cash out on sports teams if you bought them in the 90s because they are way up due to TV contract deals.  Just look at the Clippers.  That old guy who made some racy remarks about blacks made a killing being forced to sell his team (which finally started getting good after being shit for over a decade, guess those top picks finally meshed into a semi cohesive team).  I'm sure he is crying all the way to the bank.

Anyways, I don't think they could have waited for a better time considering the Mariners value went sky high with that TV deal. 

Maybe Nintendo should get out of the video games business and just start buying and selling sports teams. Really bakes the noodle...

Really though the return on the Mariners investment was good, but it's really right around the same level of appreciation that the S&P500 saw over the same period. 

Of course who knows if the Mariners stake came with marketing or promotional opportunities that may have helped or whatever. 



Kerotan on 27 April 2017
sethnintendo said:
Kerotan said:

Not if you factor in inflation but yeah still a great investment 

Yea inflation is a bitch but that is what happens when you print money out of thin air.  They sold at a pretty good time though.  The Mariners just landed a huge TV contract deal which inflated their value.  Seems like now is a good time to cash out on sports teams if you bought them in the 90s because they are way up due to TV contract deals.  Just look at the Clippers.  That old guy who made some racy remarks about blacks made a killing being forced to sell his team (which finally started getting good after being shit for over a decade, guess those top picks finally meshed into a semi cohesive team).  I'm sure he is crying all the way to the bank.

Anyways, I don't think they could have waited for a better time considering the Mariners value went sky high with that TV deal. 

It was definitely a good time to sell 



sethnintendo on 27 April 2017
specialk said:

Maybe Nintendo should get out of the video games business and just start buying and selling sports teams. Really bakes the noodle...

Really though the return on the Mariners investment was good, but it's really right around the same level of appreciation that the S&P500 saw over the same period. 

Of course who knows if the Mariners stake came with marketing or promotional opportunities that may have helped or whatever. 

Well we did get two bad ass Griffey baseball games...  They do other promotional things such as recently they had an option to order food and drink from 3DS (which apparently they were even doing during the DS days)

http://www.nbcnews.com/id/19917562/ns/technology_and_science-games/t/seattle-fans-can-take-ds-out-ballgame/

I believe they just ended the 3DS odering though but they probably have a bus outside the games demo Switch games these days.



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SWORDF1SH on 27 April 2017
Goodnightmoon said:
Lawlight said:

The horrible WiiU sales and low 3DS sales were more than compensated by the sale of the Seattle Mariners which netted Nintendo a cool $670M. Don't forget that. From your post you'd think that their traditional gaming business is what is doing the work.

Which means they were still having good profits even on one of their most difficult years ever, with 2 consoles dying and releasing less software than usual, yet even without the sale of the team the profits were more than decent. Be prepared for what is coming.

Aren't you one of the people that mocks Sony making a profit from selling a building? Why can't you handle that the bulk of their profit is from something that isn't their normal day to day business. 



Goodnightmoon on 27 April 2017
SWORDF1SH said:
Goodnightmoon said:

Which means they were still having good profits even on one of their most difficult years ever, with 2 consoles dying and releasing less software than usual, yet even without the sale of the team the profits were more than decent. Be prepared for what is coming.

Aren't you one of the people that mocks Sony making a profit from selling a building? Why can't you handle that the bulk of their profit is from something that isn't their normal day to day business. 

What are you talking about?



superchunk on 27 April 2017
bonzobanana said:
Selling underpowered, overpriced hardware insanely high-quality and highly sought after software certainly pays off. I wouldn't be surprised if despite its low sales the wii u has made more money for Nintendo than the xbox one ever will for Microsoft if you exclude xbox live revenue that is.

corrected



specialk on 27 April 2017
sethnintendo said:

Well we did get two bad ass Griffey baseball games...  They do other promotional things such as recently they had an option to order food and drink from 3DS (which apparently they were even doing during the DS days)

http://www.nbcnews.com/id/19917562/ns/technology_and_science-games/t/seattle-fans-can-take-ds-out-ballgame/

I believe they just ended the 3DS odering though but they probably have a bus outside the games demo Switch games these days.

I loved those Griffey games!



specialk on 27 April 2017
spurgeonryan said:
So will their stock go up? I need to buy some before their profit is larger next time.

The stock price generally goes up if the company exceedes expectations. Right now the expectation from Nintendo themselves is that they'll make a 45 billion yen profit next year. This involves selling about 10 million switches and 6 million 3DS systems. 

If you think they'll beat those numbers, that is a strong case for investing.