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Post by Eorl @ 01:51pm 02/08/13 | 2 Comments
Activision Blizzard has reported a net revenue of $1.05 billion for their second quarter of 2013, down from $1.08 billion in 2012's quarter but up from their prior outlook of $980 million. According to their recent financial call between investors, the company has no debt and raised $466 million in cashflow so far this year, with $4.6 billion in cash and assets.
Bobby Kotick, Chief Executive Officer of Activision Blizzard, said, “We are pleased with our second-quarter results, which confirm the preliminary results we released last week when we announced our transaction with Vivendi. The agreement we reached with Vivendi will make us an independent company and should deliver meaningful earnings per share accretion to our shareholders. Our solid performance across our franchises and strong digital sales, including continued significant growth this quarter in our Call of Duty downloadable content business over the previous year, validate our belief that we will enter this new period of independence in a position to leverage the flexibility and focus that it provides.”

Kotick added, “On a GAAP and non-GAAP basis, we delivered strong quarterly and first half net revenues, operating income, and earnings. Year to date, we generated a record $434 million in operating cash flow. However, despite this strength in the front half of the year, we remain cautious about the back half. The issues we previously identified, including increased competition in the second half of the year and uncertainties surrounding the console transition, remain on the horizon. We are confident that we will continue to successfully navigate industry challenges and find new opportunities to provide superior returns to our shareholders.”
Activision has attributed the high profits to their Skylander Giants franchise, which has reportedly earned $1.5 billion in worldwide retail sales since its inception. Again Blizzard revealed that the World of Warcraft subscriber numbers had dropped to 7.7 million, down from previous reports of 8.3 million players, though Blizzard boss Mike Morhaime stressed that the decline in Q2 was smaller than in Q1.

During the conference call Morhaime also revealed more information on several of their games, including the underwraps MMO codenamed Titan. According to the call the MMO is "unlikely to be a subscription-based MMORPG" but Morhaime didn't specify anything beyond that, other than to say that Blizzard is upholding its "commitment to quality" and has shifted some resources off Titan and on to other projects as recently reported. The executive attributed this downturn to consumer uncertainty regarding next-generation platforms.

Blizzard itself revealed that their revenue has slipped in the past quarter, taking a 65 percent fall from $634 million during last year's June quarter to just $224 million this year. Operating income from Blizzard has also seen a decline, with just $60 million this quarter, a precipitous 84 percent decline from the $371 million for the same quarter in 2012.

It wasn't just Blizzard who posted some trouble, with Activision CEO Eric Hirshberg stating (via GameSpot) that pre-orders for Call of Duty: Ghosts, the next title in the Call of Duty series, was seeing a lower number compared to Call of Duty: Black Ops 2 which sold more than 7.5 million copies on launch day.
"However, our quantitative consumer research indicates that hesitation amongst past [Call of Duty] preorderers is primarily due to not knowing which platform they will be playing on, which is natural at this time in the console transition," Hirshberg said.
The news wasn't all that bad though, with Hirshberg revealing that Destiny, Bungie's newest title outside of their recent Halo franchise, is set to become Activision next billion dollar franchise, alongside Call of Duty and Skylanders. According to the conference call Hirshberg believes that Destiny is on queue to set the all-time record for most pre-orders for a new franchise for both Activision and across the industry.

Call of Duty: Ghosts will release on Xbox 360, PlayStation 3 and PC on November 5. Call of Duty: Ghosts will also release on the Xbox One and PlayStation 4 later this year. Destiny is in development for PlayStation 3, PlayStation 4, Xbox 360 and Xbox One. No release date has yet been announced.

For more on the financial reporting, you can check out their official website.

activision blizzardtitan mmoblizzardactivisionfinancial reportcall of dutydestinyskylander

Latest Comments
Posted 02:24pm 02/8/13
Pwhoar, how on earth did Blizzards operating income drop 84%, that's crazy!

Not surprising about the whole Titan no subscription thing, other than WOW & Eve I can't think of any MMO that has a subscription at this point, certainly none of the more recent ones do.
Posted 02:28pm 02/8/13
Same quarter last year had D3 launching and the RMAH, that probably accounted for a lot. And considering they released nothing at all in that quarter this year, makes for a lop-sided comparison.
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