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Nintendo profit jumps 53.5% as US tariff refund lifts earnings
Nintendo posted profits of ¥147.4bn for the three months to June, even as overall revenue fell 10% to ¥517.8bn.
Nintendo’s quarterly profit rose sharply, helped by a refund tied to US tariffs, even as the company reported declines in total sales. The Guardian Business reports Nintendo said profits surged 53.5% to ¥147.4bn, or about £694m, for the three months to June, topping expert forecasts for ¥77.8bn.
The earnings result also reflected a split between strong demand for parts of its hardware and weaker top-line revenue. Nintendo said Switch 2 sales maintained “strong sales momentum,” but overall sales declined 10% and revenue fell 10% to ¥517.8bn, with several popular titles described as performing steadily.
Nintendo attributed the profit boost to a tariff refund after the US Supreme Court ruled Trump’s sweeping trade levies were illegal. According to the report, the US administration has refunded about $100bn, representing 60% of the $165bn collected, and Nintendo said it received a refund related to that process but did not confirm the full amount.
Following the earnings release, Nintendo’s Tokyo-listed shares rose 2.87% on Thursday. The company has previously sought a full tariff refund through legal action and was also facing a class action lawsuit alleging customers were charged higher prices due to tariffs, a case Nintendo’s lawyers called meritless, the outlet said.