According to The Australian newspaper, Nintendo Australia reported a net profit of $6.4 million after doubling sales to a record $138.8 million dollars. A massive contributor to the revenue boost was the introduction of the Nintendo Wii games console which according to the latest financial results achieved 80,000 units in sales in Australia.
50% of these units which Nintendo refused to supply to Harvey Norman was sold in the first 4 days that the new console went on sale in December 2006.
Nintendo’s net profit of $6.4 million was up from $2.1 million in the previous year.
Ben Woodhead writing for The Australian Newspaper wrote the massive sales and earnings increases put paid to a stagnant period at the business, which suffered a slight slip in revenue between its 2005 and 2006 financial years and a net loss of $2.3 million during the 12 months to March 31, 2005.
The 2007 sales and profit rises were accompanied by an equivalent rise in Nintendo’s cost of doing business here. The subsidiary’s cost of sales shot up from $56.5 million in 2006 to $107.8 million.
Marketing expenses were up 68.2 per cent year-on-year to $10.6 million while selling costs leapt 169 per cent to $9.2 million.
The company made do with fewer employees in its 2007 financial year despite the surging growth. Nintendo Australia’s headcount was 54 at March 31, down from 60 a year ago.