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Finance

Digital drives $1.1bn sales for Activision Blizzard

Wed 03 Aug 2011 8:50pm GMT / 4:50pm EDT / 1:50pm PDT
BusinessFinance

Update: Sales of digital product now accounts for 37% of revenue; profits up 53% to $335m; Black Ops sells 25m

Activision Blizzard

Headquartered in Santa Monica, California, Activision Blizzard, Inc. is a worldwide pure-play online...

activisionblizzard.c...

Sales of digital product has helped Activision Blizzard to net revenues of $1.14 billion for the second quarter, up from $967 million for the same period last year.

Net profits for the three months were up 53 per cent to $335 million, from $219 million. Six month profits were $838 million off sales of $2.59 billion.

Digital sales were up 27 per cent, said the company, accounting for 37 per cent of revenues during the quarter.

"Our better-than-expected second-quarter performance was driven by record digital sales of our online-enabled franchises," commented CEO Bobby Kotick. "For the six month period, net revenues from digital channels grew more than 20 per cent, driving record operating margin and EPS growth of more than 50 per cent."

The company reiterated its focus for the near term, stating that it "plans to allocate the majority of its resources and focus toward opportunities which it expects will afford it the greatest competitive advantages and the greatest potential for best-in-class quality, high-margin digital growth, and long-term success."

Products in that portfolio include new content for the World of Warcraft, StarCraft and Diablo franchises, as well as Blizzard's next MMO. Alongside those is continued investment in Call of Duty and the COD Elite digital platform, Bungie's new title for the publisher and toy tie-in Skylander: Spyro's Adventure.

According to Kotick, pre-orders of Call of Duty: Modern Warfare 3 "have significantly exceeded the pre-orders for Black Ops as this time last year." The game is due on November 8, alongside digital service Call of Duty Elite.

Update: In a conference call following the earnings release, Activision Publishing's Eric Hirschberg stated that Call of Duty: Black Ops has now sold 25 million copies worldwide, and Modern Warfare 2 a total of 22 million.

6 Comments

James Prendergast
Research Chemist

730 410 0.6
Profits are up? Uh oh...

*Awaits the inevitable reduction in staffing levels as per the trend in recent years*

Posted:2 years ago

#1

John Donnelly
Quality Assurance

314 38 0.1
I would hope not James.. I know the last 2 years have seen the cuts go very far and deep.

Posted:2 years ago

#2

James Prendergast
Research Chemist

730 410 0.6
@ John,

Me too... But after seeing too many similar stories, my cynicism is making me expect a second news story in a week or so.


However, this reads to me like the beginning of a paragraph that ends in "whilst reducing overheads and commitments in other areas":

"plans to allocate the majority of its resources and focus toward opportunities which it expects will afford it the greatest competitive advantages and the greatest potential for best-in-class quality, high-margin digital growth, and long-term success."

Edited 1 times. Last edit by James Prendergast on 4th August 2011 4:02pm

Posted:2 years ago

#3

John Donnelly
Quality Assurance

314 38 0.1
Well, the cuts really only came in the Q4 reports at the start of the year, its too early to call the year a bust yet as the holiday lineup where most of the costs will hit on show up on the ballence sheet.

Its been after the year end results that they have weilded the knives so I would not expect to see any cuts right now as you dont want to cut jobs when your teams are working hard as it has the effect of knocking moral on its backside.

Posted:2 years ago

#4
Wait till Return of the Cod-piece 3 ships. Then reductions in staff could make the news as ever

Posted:2 years ago

#5

John Donnelly
Quality Assurance

314 38 0.1
As long as its natural end of cycle stuff Chee and not another cull I wont mind so much.
If they do another cull I dont know how they expect to retain any staff or recuit new ones to fill the voids as people jump ship.

Posted:2 years ago

#6

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