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Activision profits hit $381m in first quarter

Continued success of Modern Warfare and World of Warcraft helps company achieve better than expected results

Activision has recorded better than expected first quarter results, with profits at $381 million for the period ended March 31, 2010, up from $189 million in 2009.

Net revenues were $1.3 billion, with the publisher singling out continued strong sales of the Call of Duty and World of Warcraft franchises.

Call of Duty: Modern Warfare 2 was the number one third-party franchise and the number one best-selling third-party game of all time during the quarter, according to NPD in the US and Gfk Chart-Track in Europe.

"Our better-than-expected first quarter performance was driven by strong global consumer demand for Activision's Call of Duty and Blizzard Entertainment's World of Warcraft," commented Bobby Kotick, CEO of Activision. "Throughout the remainder of the year, we plan to release our strongest videogame lineup ever based on some of the industry's highest quality, profitable franchises.

"We expect to deliver record calendar year non-GAAP net earnings and expanded non-GAAP operating margins. In addition, we continue to strengthen our franchise portfolio and development resources for the future. Our high-quality brands, industry leading operational capabilities and solid balance sheet should enable us to take full advantage of the opportunities afforded by the expanding interactive entertainment market and allow us to deliver continued superior returns to our shareholders."

While the quarter has seen the company embroiled in a bitter legal row with ex-Infinity Ward members who have since formed a partnership with rival publisher Electronic Arts, it has also inked a 10-year deal with Halo creators Bungie, which it hopes will deliver further gains for shareholders in the long term.

The second quarter will see Activision release new racing series Blur, Shrek Forever After, Transformers: War for Cybertron and Singularity.

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Latest comments (7)

Haven Tso Web-based Game Reviewer 10 years ago
And they are withholding bonus from Infinitiy Ward to hold them hostage. Big company tsk tsk tsk
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Ade Gbenjo Freelance Games Journalist 10 years ago
Love 'em or Hate 'em, success like this is a boon to the industry as a whole.

Edited 1 times. Last edit by Ade Gbenjo on 6th May 2010 10:19pm

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Perry Chen Studying Finance, Boston College10 years ago
My university's investment club owns thousands of shares of Activision stock. It's a decent performer (even if the P/E on that stock is very high). Furthermore, Activision has the best ROE of any major third party video game publisher.

However, Activision's hesitation to diversify and create new franchises will likely be a source of its possible downfall in earnings if it does not act soon.
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Show all comments (7)
Tom Baines Journalists 10 years ago
With the recent anouncement of the deal with Bungie (which will likely see the Halo franchise piling even more profit into the Activision pot) it looks likely the numbers are going to continue looking strong for the next few years at least.
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Alex Dixon Programmer, Juice Games10 years ago
"which will likely see the Halo franchise piling even more profit into the Activision pot" - doubtful as Microsoft owns the Halo IP.
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CaseyB Artist, Digital Extremes10 years ago
The Bungie / Activison deal won't be such a pay day for Activision as the late IW deal was.
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Bradford White Studying Video game design, Collins College10 years ago
Its always good to hear when Video game companies prosper! Hopefully I can get hired at one of Activisions studios =P.
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