Author Topic: UPDATE: Activision Posts Record First Quarter; Lifts FY View
GutterSludge 
Posts: 4,620
Registered: Nov 6, '05
Extended Info (if available)
Real Post Cnt: 4,545
User ID: 1,091,587
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
from

http://online.wsj.com/article/BT-CO-20110509-716588.html

SAN FRANCISCO (Dow Jones)--Activision Blizzard Inc.'s (ATVI) first-quarter profit jumped 32% as digital sales surged amid continuing popularity of its "Call of Duty" and "World of Warcraft" franchises.

The Santa Monica, Calif.-based company raised its full-year outlook to an adjusted 73 cents in earnings per share on revenue of $3.95 billion, up from the February targets of 70 cents and $3.9 billion, respectively.

Chief Executive Robert Kotick said Activision has not been materially affected by a nearly three-week outage of Sony Corp.'s (SNE, 6758.TO) PlayStation Network that has raised questions about the security and reliability of online services. Last month, Sony took its network offline following a security breach that compromised 77 million customer accounts, leaving customers unable to play games together over the Internet.

Kotick said games like World of Warcraft, which require a monthly subscription payment, have created stable and growing revenue streams for Activision. He added that Activision's investments this year will mostly focus on the company's popular franchises and higher-margin online products.

"We're still scratching the surface of the role digital delivery will play in our products and services," Kotick said.

Activision's better-than-expected results stand in contrast to the broader videogame industry, which has struggled to capture customer attention as consumers embrace cheaper games made for smartphones, tablets and popular websites such as Facebook. Activision, by comparison, has produced some of the most popular titles in the industry, attracting customers who regularly replay its games online and buy additional content packs in droves.

For the latest quarter, Activision reported a profit of $503 million, or 42 cents a share, up from $381 million, or 30 cents a share, a year earlier. Excluding the impact of deferred sales, stock-based compensation and other impacts, adjusted earnings rose to 13 cents from 9 cents.

Total revenue jumped 11% to $1.45 billion. On an adjusted basis, which excludes the impact of the change in deferred sales, revenue climbed 5.7% to $755 million.

In February, the company projected adjusted earnings of about 7 cents a share and fully-reported revenue of $1.28 billion.

For the current quarter, the company expects earnings of 4 cents on revenue of $575 million, compared with the 8 cents and $661 million predications by analysts polled by Thomson Reuters.

Operating margin grew to 46.5% from 39.1%.

Product sales increased 7.6% to $1.06 billion, while subscription, licensing and other revenue grew 20% to $388 million.

Activision's shares were up 0.6%, to $11.61 in after-hours trades, after closing up nearly 1%.

-By Ian Sherr, Dow Jones Newswires; 415-439-6455; ian.sherr@dowjones.com

--John Kell contributed to this article.



Quasi, it isn't about whether they count "cancelled" subs or not, it's about the fact that it simply doesn't matter wink !!

 

-----signature-----
Guttersludge
People just can't handle the truth.
NeMeFieD said:"Yea I Ucmed for 12 days straight.."
njwCSUS posted:I'm homosexual, so really, its ongoing sexual attraction to my father, not my mother.
Link to this post
Quazimortal 
Title: The One and Only
Posts: 17,806
Registered: Sep 18, '04
Extended Info (if available)
Real Post Cnt: 17,157
User ID: 968,129
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
GutterSludge posted:
Quasi, it isn't about whether they count "cancelled" subs or not, it's about the fact that it simply doesn't matter wink !!


Haha! Indeed.

 

-----signature-----
“A painter paints his pictures on canvas. But musicians paint their pictures on silence.
We provide the music, and you provide the silence.” ~Leopold Stokowski
Link to this post
siujoey 
Posts: 4,944
Registered: Dec 26, '01
Extended Info (if available)
Real Post Cnt: 4,893
User ID: 575,651
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
GutterSludge posted:
Operating margin grew to 46.5% from 39.1%.


HOLY CRAP.

 

-----signature-----
I'm the Dude. So that's what you call me. You know, that or, uh, His Dudeness, or uh, Duder, or El Duderino if you're not into the whole brevity thing.
Link to this post
Bremen_Gaheris 
Posts: 1,567
Registered: Jan 29, '03
Extended Info (if available)
Real Post Cnt: 1,529
User ID: 764,499
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
http://www.vivendi.com/vivendi/IMG/pdf/2011_05_12_financial_report_financial_statements_Q1_2011.pdf


I read through their first quarter report and I saw, no kidding, only one mention of World of Warcraft. And they lumped it in with other games when they mentioned it. They were mainly bragging about their Xbox expansion pack downloads. I didn't see that much in the way of impressive WoW love in this report. Please correct me if I am wrong.

 

-----signature-----
The VNboards are so much fun! Its like my own personal train wreck going 24/7
and noone is actually getting hurt which takes away the guilt of watching.
Link to this post
Kriegprojekt 
Posts: 2,653
Registered: Apr 12, '10
Extended Info (if available)
Real Post Cnt: 2,591
User ID: 1,390,814
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
siujoey posted:
GutterSludge posted:
Operating margin grew to 46.5% from 39.1%.


HOLY CRAP.


I guess when you dont have much in the way of expenses (ie production of hard copy materials) and do a lot of digital downloads, this is what happens. Digital downloads are the way to go since you can still charge the same amount for a product that some schlep bought at the store in hard copy.

They may also be getting away with not paying state sales tax too with DD. That would definitely increase operating margin.

 

-----signature-----
http://www.immortal-guild.com/
Deepstrike Server
Milkman - Guardian Bard
Link to this post
Blisteringballs 
Posts: 2,247
Registered: Aug 12, '09
Extended Info (if available)
Real Post Cnt: 2,247
User ID: 1,366,612
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
Black OPs baby, I'm pretty sure it is the highest selling title of all time. At least since they started keeping precise records (though I'm sure it is). With WoW also bringing in the dough and other titles doing pretty good in their own right, DLC add-ons and map packs, etc, yea, not a surprise that the biggest publisher made big money.

 

-----signature-----
Link to this post
-MrBean- 
Title: Now With Extra Baldness
Posts: 13,652
Registered: May 23, '01
Extended Info (if available)
Real Post Cnt: 13,376
User ID: 98,822
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
Blisteringballs posted:
BBlack OPs baby, I'm pretty sure it is the highest selling title of all time At least since they started keeping precise records (though I'm sure it is). With WoW also bringing in the dough and other titles doing pretty good in their own right, DLC add-ons and map packs, etc, yea, not a surprise that the biggest publisher made big money.


I thought the Sims was way and beyond the reach of anything for that record.

 

-----signature-----
(none)
Link to this post
Demorak 
Posts: 6,097
Registered: Jan 16, '09
Extended Info (if available)
Real Post Cnt: 5,924
User ID: 1,344,935
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
-MrBean- posted:
Blisteringballs posted:
BBlack OPs baby, I'm pretty sure it is the highest selling title of all time At least since they started keeping precise records (though I'm sure it is). With WoW also bringing in the dough and other titles doing pretty good in their own right, DLC add-ons and map packs, etc, yea, not a surprise that the biggest publisher made big money.


I thought the Sims was way and beyond the reach of anything for that record.


COD:BO may have been the fastest in a release timeframe, but hardly the highest selling title of all time. grin

 

-----signature-----
"A wise man can learn more from a foolish question than a fool can learn from a wise answer."
Link to this post
Spookysheep 
Title: Lieker of Cheese
Posts: 21,595
Registered: Jan 9, '02
Extended Info (if available)
Real Post Cnt: 21,166
User ID: 601,475
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
As soon as I finished the first mission in Black Ops I was like, wow, this game sucks worse than I imagined.

 

-----signature-----
I liek cheese
Pirates > Ninjas
.....................................
Link to this post
Blisteringballs 
Posts: 2,247
Registered: Aug 12, '09
Extended Info (if available)
Real Post Cnt: 2,247
User ID: 1,366,612
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
Hmm, I've found a few articles citing NPD claims that it is the best selling US game of all time, so I suppose that's where I heard it. Not sure if that's just for consoles, too lazy to keep googling.

 

-----signature-----
Link to this post
Boone-Eldar 
Title: Infallible
Posts: 16,589
Registered: Dec 28, '01
Extended Info (if available)
Real Post Cnt: 16,173
User ID: 580,486
Subject: UPDATE: Activision Posts Record First Quarter; Lifts FY View
Black Ops was pretty mediocre.

 

-----signature-----
Seriously?
raised_brow
Link to this post

Valid XHTML 1.0 Transitional Powered by PHP