As you know, Nintendo Switch has changed Nintendo’s business by positioning itself as the company’s only main console. The truth is that the financial results shared today are really positive and now we bring you more interesting details related to them.
It is a “notice of acquisition of treasury shares and cancellation of treasury shares”. This consists of buying own shares, then cancelling them and thus removing them from your share lot in order to pay less dividends. This move is only possible at times of high profitability in a company, which is currently the case for Nintendo thanks to Switch.
In this way, they expect to buy back up to 1.8 million shares between 6 August and 15 September, which is about 1.51% of the company’s shares. The limit of money they plan to spend is 100 billion yen ($912.1 million).
This is the message Nintendo has shared, informing us of this:
To take advantage of our favourable cash position based on the performance of the Nintendo Switch business over the past few years, we are conducting a buyback of our shares.
As an entertainment brand, we strive to achieve sustainable growth and increase corporate value by delivering unique entertainment experiences that leverage our strengths. It is essential to have a solid financial foundation to continue to deliver surprises through our products and services in a business where trends are often profound and the future is often difficult to predict. Based on this belief, we have maintained sufficient profits to consistently deliver on our mission to create smiles through unique Nintendo experiences.
Effective use of cash remains an important management tool. We have a strong cash position thanks to the Nintendo Switch business exceeding our own expectations, and as a result, we have fortuitously gained a renewed opportunity to consider how to invest our cash most effectively in various strategic and meaningful ways. In addition to using a portion of the funds to repurchase shares, we will continue to carefully consider how to deploy funds and investments in the future.