Nintendo impressed investors this week when it posted a strong first fiscal quarter, exceeding analyst expectations.
The Japanese electronics company returned to profitability in a quarter driven by strong sales of Switch, its new gaming console.
Nintendo posted revenue of 154 billion yen, ahead of expectations of 136 billion, and operating profit of 16 billion yen versus forecasts of 10 billion.
The company revealed that it sold two million Switch units during the quarter, down from nearly three million during the launch quarter. But Nintendo remains on pace for its target of pushing 10 million units during the console’s first year on the market.
Nintendo also experienced a boost from mobile, where revenue skyrocketed 450 per cent year-over-year. It’s still a small component of the company’s overall finances, but as more titles are released, mobile will become an increasingly lucrative revenue stream.
Shares in Nintendo are up 45 per cent since the start of the year.