Activision Posts Better That Expected Q2
INDUSTRY NEWS posted on 5 AUG 2009 by Jim Zabek
A better second quarter than anticipated.
Aug 05, 2009 /PRNewswire-FirstCall via COMTEX News Network/ Activision Blizzard, Inc. (Nasdaq: ATVI) today announced better-than-expected financial results for the second quarter 2009.
For the quarter ended June 30, 2009, Activision Blizzard's GAAP net revenues were $1,038 million, and its non-GAAP net revenues were $801 million. The company's prior GAAP net revenue outlook for the quarter was $1 billion. On a non-GAAP basis, the company's net revenue outlook was $775 million.
For the quarter ended June 30, 2009, Activision Blizzard's GAAP earnings per diluted share was $0.15, and the company's non-GAAP earnings per diluted share was $0.08. The company's prior GAAP earnings per diluted share outlook was $0.10. On a non-GAAP basis, the company's earnings per diluted share outlook was $0.06.
The company reports results on both a GAAP and a non-GAAP basis. Please refer to the tables at the back of this press release for a reconciliation of the company's GAAP and non-GAAP results.
Robert Kotick, CEO of Activision Blizzard, stated, "Since our merger one year ago, we have delivered better-than-expected financial performance for four consecutive quarters. Our second quarter overperformance was driven by Activision Publishing's PROTOTYPE, Transformers(R): Revenge of the Fallen, X-Men Origins: Wolverine and the Guitar Hero(R) and Call of Duty(R) franchises, as well as Blizzard Entertainment(R)'s World of Warcraft(R). During a challenging economic climate, Activision Blizzard grew its quarterly North American and European market share 2.8 points across all platforms to 12.7% from 9.9% for the previous year and was the #1 North American third-party console and handheld publisher for the quarter and first six months of the calendar year, according to the NPD Group, Charttrack and Gfk."
Kotick continued, "This fall, we will release our strongest video game slate based on some of the industry's most successful franchises, including Infinity Ward's Call of Duty: Modern Warfare(R) 2, Guitar Hero 5(TM), DJ Hero(TM), Band Hero(TM), Tony Hawk(R): RIDE(TM) and Bakugan Battle Brawlers(TM). We are in a unique industry position to be able to invest in people, products and resources for the long term without compromising our short-term commitments of earnings growth and margin expansion."
"As we prepare for next year, we have moved the expected release dates for two games, Activision Publishing's Singularity and Blizzard Entertainment's StarCraft(R) II, into 2010. However, we are increasing our calendar year earnings-per-share GAAP outlook and reaffirming our calendar year earnings-per-share non-GAAP outlook and still expect to deliver record non-GAAP operating margins. Although there is a great deal of economic uncertainty in the global marketplace, we remain focused on the opportunities afforded by our industry and will continue exploring potential new markets and business models that should enable us to continue expanding our operating margins," Kotick added.
Business Highlights
For the second quarter, Activision Publishing was the #1 U.S. third-party console and handheld publisher and had three of the top-10 best-selling titles in the U.S., PROTOTYPE, Guitar Hero World Tour and Wolverine, according to the NPD Group.
For the first six months of the calendar year, Activision Publishing had two of the top-five best-selling titles in North America and Europe - Guitar Hero World Tour and Call of Duty: World at War - and grew its North American and European market share of the music/dance category 8 points to 53% as compared to the same period last year, according to the NPD Group, Charttrack and Gfk.
Other highlights are as follows:
During the quarter, Activision Blizzard was the #1 publisher overall in
North America and Europe on the Xbox 360(TM) video game and
entertainment system from Microsoft and the PlayStation(R) 2 computer
entertainment system from Sony, according to the NPD Group, Charttrack
and Gfk.
Activision Blizzard increased its European market share by 2.8 points to
10.5% for the quarter, as compared to the same period during the
previous calendar year, according to Charttrack and Gfk.
Activision Publishing's new IP PROTOTYPE, was the #1 best-selling
console title in North America for the month of June, according to the
NPD Group.
X-Men Origins: Wolverine and Transformers: Revenge of the Fallen were
respectively the #1 and #2 best-selling movie games released on the same
dates as their respective theatrical films in North America for the
second quarter, according to the NPD Group.
Guitar Hero was the #1 third-party franchise in North America and Europe
for the first six months of the calendar year, according to the NPD
Group, Charttrack and Gfk.
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