Activision losses beat expectations; upbeat on future prospects

Publisher Activision has reported a loss of $18 million in the quarter ended June 30th, but has beaten analyst expectations for the period - which included the signing of a long term deal for the James Bond franchise.

That deal is believed to have contributed heavily to Activision's losses, which were also driven by the acquisition of Guitar Hero publisher RedOctane during the quarter.

Revenues for the quarter were $188 million, down from $241 million last year, with the majority of the firm's sales coming from movie tie-ins X-Men and Over The Hedge. One interesting aspect of the firm's revenues is that $1m came from the sale of supplemental download content for Call of Duty 2 - a tiny percentage of the overall figure, but a promising start for Activision's ambitions with download content.

Despite the loss - which compares unfavourably to a $3.6 million loss in the same quarter last year - the firm remains upbeat about prospects for the rest of the current financial year, FY07, and even more optimistic about FY08.

Projections for the full year see Activision's revenues topping a billion dollars, with the company revising its projection upwards to $1.075bn in the latest statement - while for FY08, it is predicting a record $1.6bn in revenue.

The company is looking to the next generation for future success, according to chairman and CEO Robert Kotick, who commented that: "We are excited about our strong launch lineup for the PlayStation 3 and Nintendo Wii, as well as our solid slate for the Xbox 360."

"While there is still uncertainty with respect to the opportunities next-generation consoles will provide this fiscal year, we remain confident about the long-term industry prospects," he concluded.