By Daniel Hunter

Nintendo has reported its first annual operating profit in four years, after beating market forecasts.

The Japanese video game maker posted profits of 24.8bn yen ($207m; £136m) for the year to March. It surpassed its own forecasts of 20bn yen and analyst expectations of 23.8bn yen.

But revenues were down as sales fell 4% to 549.8bn yen. Nintendo said reduced costs had helped it to turn a profit despite the slowing sales.

Nintendo also said that it expects to report a profit of 50bn yen in the year to March 2016. Analysts forecast 39bn yen.