Nintendo Reports 52% Surge in Quarterly Profits, Driven by Mario and Zelda Games
Japanese video game company Nintendo has revealed a 52% surge in net profit for the three months ended June, compared to the same period last year. The company’s profit reached 181 billion yen ($1.7 billion), while net sales spiked 50% to 461.3 billion yen. Sales outside of Japan accounted for 80% of the total. Nintendo attributed the impressive performance to the success of its popular videogame franchises, including the April release of The Super Mario Bros. Movie and the May release of The Legend of Zelda: Tears of the Kingdom. The mobile and intellectual property business also contributed to the company’s strong financial results, with income from the segment increasing by 190.1% year-on-year.
AMD Considers India Crucial for High-Tech Chip Demand
Advanced Micro Devices (AMD), a leading semiconductor company, sees India as an essential market for its product development and growth. Mark Papermaster, the company’s executive vice president and chief technology officer, stated in an exclusive interview with CNBC that they are pleased to expand their investment in India. AMD plans to allocate around $400 million to build its largest design center in the country and add 3,000 engineering roles. Papermaster emphasized that India is crucial for AMD to remain competitive in the AI chips market. The company’s next-generation AI chip, the MI300, is currently being designed in India, with the India design team involved in almost all of AMD’s product development.
Caixin Index Shows Expansion in China’s Service Sector for the Seventh Consecutive Month
China’s service sector witnessed sustained growth in July, as indicated by the Caixin purchasing managers index (PMI), which increased slightly from 53.9 in June to 54.1 last month. The report stated that business activity across the sector rose solidly, supported by a marked and accelerated rise in overall new business. This growth has also prompted firms to expand their workforce for the sixth month in a row.
Australia Records Trade Surplus in July Higher than Expected
Australia’s trade surplus for June amounted to 11.3 billion Australian dollars ($7.4 billion), surpassing the forecast of AU$11 billion. Although the surplus decreased from May’s AU$11.7 billion, it was still higher than anticipated. The decline was primarily due to a decrease of 2% in exports, driven by a fall in other mineral fuels, which includes liquefied natural gas. Imports also fell by 4% compared to May, mainly due to a decrease in non-industrial transport equipment.
Hong Kong’s Business Activity Contracts for the First Time in 2023
Hong Kong experienced a contraction in business activity for the first time in 2023, according to private surveys conducted by S&P Global. The city’s purchasing managers index (PMI) for July was 49.4, down from 50.3 in June, indicating a decline in overall new orders and lower output. However, the report also highlighted that the pace of business activity contraction was mild, with new business from abroad and mainland China still displaying growth.
Bank of America Research Shows Lowest Cost of Hedging in 15 Years
The cost of hedging against a potential stock market downturn has reached a 15-year low, according to research conducted by Bank of America. The bank has identified a “cheap” options trade that would benefit investors if the S&P 500 were to fall by 10% in the next 12 months.
Kakao Corporation Reports 44% Drop in Net Profit in Q2
South Korean internet giant Kakao Corporation saw its net profit for the second quarter decline by 44% year-on-year, amounting to 56.3 billion South Korean won ($43.4 million). The drop in profits was attributed to a high base effect due to a stock disposal gain recorded in the same period last year. Despite the decline in net profit, Kakao’s revenue increased by 12% compared to the previous year’s second quarter, reaching 2.04 trillion won. This quarter also marks the first after Kakao Entertainment acquired a 39.9% stake in K-pop agency SM Entertainment following a takeover battle with rival Hybe.