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Activision Blizzard revenues down as WoW, CoD contract

By Dan Pearson

Activision Blizzard revenues down as WoW, CoD contract

Fri 31 Aug 2012 7:17am GMT / 3:17am EDT / 12:17am PDT

But strong Skylanders and spread income from Diablo III offer hope in Vivendi report

Activision Blizzard

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


Activision Blizzard's financial report for the second quarter of 2012 was published last night, revealing a shrinking revenue from both World of Warcraft and Call of Duty. However, strong performances from Skylanders and Diablo III have bolstered finances somewhat.

Revenues across the company's business for the first half of FY 2012 were down by 6.8 per cent to €1.731 billion, compared to €1.857 billion for the first half of FY 2011. However, quarterly sales were up year on year, with a gain of €41 million brining in €837 compared to €796 in the same quarter last year.

Nonetheless, once those numbers are viewed with the caveat of a constant currency rate, that 5.2 per cent increase in quarterly sales disappears, turning into a 6.2 per cent shrinkage.

EBITA, the closest the company comes to publishing raw net profit figures, also took a knock, shrinking hugely year on year from €331 million to €177 million for the quarter. It also dropped in a six month comparison, €833 to €572 million.

In the notes attached to the report, which covers the businesses of the publisher's parent company Vivendi, it was explained that both WoW and CoD incomes were shrinking. WoW's fading was assigned to lower subscriptions and catalogue sales, but no explanation was given for the fact that: "revenues related to Call of Duty digital offerings and catalogue were lower compared to the same period last year".

World of Warcraft's subscriber numbers have now dropped to the levels they were in 2007, at a constant nine million, down from a zenith of 12 million two years ago.

Revenues from Diablo III have been heavily deferred in line with regulations on online income and as such the full impact of the game, which is the world's fastest selling PC title, has yet to be felt. That, combined with the presence of the forthcoming Mists of Pandaria expansion for Warcraft, Skylanders Giants and Black Ops II on the release slate leaves Activision Blizzard confident enough to up projected EBITA to €800 from the previous estimation of €750 for the year.

Activision Blizzard's financials were originally released at the beginning of August - these figures are part of a wider Vivendi release.

From Recommendations by Taboola


Bruce Everiss Marketing Consultant

1,692 595 0.4
Hence Activision Leeds.

And the 100 people they have at Freestyle Games here in Silicon Spa working on "something".

Posted:4 years ago

Hopefully its a Active Vision

Posted:4 years ago


Peter Dwyer Games Designer/Developer

490 302 0.6
Spread income from Diablo 3?

What does that mean?

Posted:4 years ago

>"...Activision Blizzard confident enough to up projected EBITA to 800..."

Okay that makes it simple of the trade media to report the story - if by the next reporting the expectations on the increase based on other business dose not address this short fall then we can all point to a failed management structure (and make allusions towards possible improper reporting to inflate prospects in the face of a management buy-out). However if they do, then we have to agree with their strategy and commend Activisions' operational team... simple!

Posted:4 years ago


Paul Johnson Managing Director / Lead code monkey, Rubicon Development

1,219 2,667 2.2
There's a big difference between profits shrinkage and losing money. They've been (deservedly) hoovering up cash for years, so I'm struggling to feel sorry for them tbh. But it does suggest people might be looking for better value in these pressing times - WoW has never been cheap.

Posted:4 years ago


Alfonso Sexto Lead Tester, Ubisoft Germany

1,166 1,297 1.1
The Real Money Auction House maybe?. Really; just wondering... only thing that comes to my mind right now :/

Posted:4 years ago


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