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miladesn
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(08-03-2011, 09:18 PM)
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press release

Originally Posted by PR

Activision Blizzard Announces Better-Than-Expected Second Quarter 2011 Financial Results

- Q2 Net Revenues Up Year Over Year; Record EPS Increases Over 66% Year Over Year -
- For Six-Month Period Net Revenues Up; Record EPS Increases Over 50% Year Over Year -
- For Six-Month Period Net Revenues from Digital Channels Grow More Than 20% Year Over Year -

- Company Increases Full Year Outlook for Net Revenues and EPS -

SANTA MONICA, Calif., Aug. 3, 2011 /PRNewswire/ -- Activision Blizzard, Inc. (Nasdaq: ATVI) today announced better-than-expected financial results for the second quarter of 2011.

In the quarter, the company delivered record GAAP net revenues of $1.1 billion, as compared with $967 million for the second quarter of 2010. On a non-GAAP basis, the company's net revenues were $699 million, as compared with $683 million for the second quarter of 2010. For the second quarter, the company delivered record GAAP net revenues from digital channels, representing a 27% increase year over year, and accounting for 37% of the company's total net revenues. On a non-GAAP basis, record net revenues from digital channels increased 13% year over year, accounting for more than 60% of the quarter's total net revenues.

For the second quarter of 2011, Activision Blizzard's GAAP earnings per diluted share were $0.29, as compared with $0.17 for the second quarter of 2010. On a non-GAAP basis, the company's earnings per diluted share were $0.10, as compared with $0.06 for the second quarter of 2010.

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

Kotick continued, "Looking to the balance of the year, while we have numerous releases we believe our audiences will be especially excited by three key properties -- Call of Duty: Modern Warfare 3™, our new online service Call of Duty Elite and Skylanders Spyro's Adventure™ -- all of which are shaping up to be incredible. To date, pre-orders for Modern Warfare 3 have significantly exceeded the pre-orders for Black Ops at this time last year. In addition, we believe that Call of Duty Elite, which was built for Modern Warfare 3 and is expected to launch with the game on November 8, should redefine social connectivity for multiplayer gaming. Additionally, we expect that Skylanders Spyro's Adventure will change the way we look at toys and video games by bringing the world of toys, video games and the Internet together in an unprecedented way."

Kotick added, "Today, there are more ways than ever for players to access entertainment online and play games which have truly become one of the most compelling forms of entertainment in the world."

Business Highlights
•Call of Duty: Black Ops was the #1 game in the U.S. and Europe for the first half of 2011.(1)
•For the second quarter, Blizzard Entertainment had two top-10 PC titles with World of Warcraft®: Cataclysm™ and StarCraft® II: Wings of Liberty™.(2)
•To date, Call of Duty: Black Ops players have logged more than 2.2 billion hours of online gameplay.(3)
•Total unique online gamers playing Call of Duty: Black Ops were more than 30% greater than the total unique online gamers who played Call of Duty: Modern Warfare® 2 during the first eight months after each game's release.(4)
•On May 11, 2011, Activision Blizzard paid a cash dividend of $0.165 per common share to shareholders of record as of March 16, 2011.
•As of June 30, 2011, Activision Blizzard had purchased approximately 43 million shares of its common stock, for an aggregate price of approximately $479 million, under the $1.5 billion stock repurchase program authorized by its Board of Directors in February 2011.


Company Outlook


On July 28, 2011, Activision Publishing released the Call of Duty: Black Ops Annihilation™ content pack for Sony's PlayStation3 computer entertainment system and the PC. During the quarter, Activision Publishing also expects to release the Call of Duty: Black Ops Resurrection™ content pack for the Xbox 360 video game and entertainment system from Microsoft, Sony's PlayStation3 computer entertainment system and the PC, as well as X-Men™ Destiny, Cabela's Big Game Hunter 2012 and a Kinect-ready title for the Xbox 360, Cabela's Hunting Party. Additionally, Blizzard Entertainment's World of Warcraft: Cataclysm was launched in China on July 12, 2011.


For calendar year 2011, Activision Blizzard is raising its outlook from the estimates it provided on May 9, 2011. Since Blizzard Entertainment has not confirmed a launch date for its next global release, the company's calendar year outlook at this time does not include a new game from Blizzard in 2011.

Notes from conference:
- Black Ops at 25m, MW2 at 22m shipped.
- WoW subscribers at 11.1m
- Blizzard is pushing to launch Diablo III this year, they will know after beta test. (thread http://www.neogaf.com/forum/showthread.php?t=439597)
- Diablo III real money item trading might come to Star Craft II in forms of selling maps (nothing announced)
- Modern warfare 3 is coming to Wii
- Modern Warfare 3 preorders ahead of Black Ops
- Mappack sales for Black Ops 40% ahead of MW2, 14m sold.




Conference Call over.

Last edited by miladesn; 08-03-2011 at 11:20 PM.
TacticalFox88
Lives in a Tom Clancy novel
(08-03-2011, 09:19 PM)
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Amazing what one franchise can do for a company.
demosthenes
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(08-03-2011, 09:19 PM)
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Originally Posted by TacticalFox88

Amazing what one franchise can do for a company.

What?

WoW, CoD, Starcraft all print money for them.
DMczaf
(08-03-2011, 09:20 PM)
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Might as well just put "Blizzard and Call of Duty" as their Business Highlights.
dimb
Bjergsen is the greatest midlane in the world
(08-03-2011, 09:20 PM)
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Such tasteful music during the wait period for the conference call.
HBroward
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(08-03-2011, 09:33 PM)
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They really hit it out of the park this quarter, looks like a ton of people bought the CoD map packs. And here goes the conference call.
HotHamWater
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(08-03-2011, 09:33 PM)
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Starting now, btw.
miladesn
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(08-03-2011, 09:34 PM)
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conference call started, link in the first post.
Nirolak
Mrgrgr
(08-03-2011, 09:34 PM)
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Odds on the music being better than the actual conference?
Gomu Gomu
Member
(08-03-2011, 09:35 PM)
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Cabela's Big Game Hunter 2012

I hope Mega64 do another skit for this one. There ain't no Halo this time.
steadfast
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(08-03-2011, 09:35 PM)
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youtube stream from Force Gaming

http://www.youtube.com/user/ForceSC2.../l/IM9Ye_s6A8w
cuyahoga
Dudebro, My Shit is Fucked Up So I Got to Shoot/Slice You II: It's Straight-Up Dawg Time
(08-03-2011, 09:37 PM)
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Is Cabela's Hunting Party the bizarre minigame-riffic/hunting sim/cartoon crossover everyone's been waiting for?
bluestuff
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(08-03-2011, 09:38 PM)
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come on, Diablo 3 beta date!!!!!!
dimb
Bjergsen is the greatest midlane in the world
(08-03-2011, 09:39 PM)
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So it doesn't sound like there will be Diablo 3 this year beyond the beta, which is weird for how early in the year it's coming.
miladesn
Member
(08-03-2011, 09:40 PM)
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nvm.
Last edited by miladesn; 08-03-2011 at 09:46 PM.
iceatcs
Junior Member
(08-03-2011, 09:41 PM)
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12 times "Call of Duty" showing on their PR. Not enough, it need a lot more of that.
steadfast
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(08-03-2011, 09:41 PM)
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we don't know yet - Blizz guys usually go last and they just started the CoD circle jerk
HBroward
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(08-03-2011, 09:43 PM)
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Diablo 3 could still be this year, they just aren't factoring it into the projections, that way if it does release, they get to say, "Look how much we beat expectations!" I wouldn't read too much into it. If they did factor it in, and it got delayed, then they miss by a mile.
JABEE
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(08-03-2011, 09:44 PM)
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Originally Posted by HBroward

Diablo 3 could still be this year, they just aren't factoring it into the projections, that way if it does release, they get to say, "Look how much we beat expectations!" I wouldn't read too much into it. If they did factor it in, and it got delayed, then they miss by a mile.

Diablo 3 actually could come out this year?
cwmartin
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(08-03-2011, 09:46 PM)
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Originally Posted by JABEE

Diablo 3 actually could come out this year?

Quoted hoping this gets rolling. DIABLO 3 IN 2011????
HotHamWater
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(08-03-2011, 09:46 PM)
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Nice typo there. "Diablo IIII with real money auction house."
JABEE
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(08-03-2011, 09:46 PM)
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Originally Posted by cwmartin

Quoted hoping this gets rolling. DIABLO 3 IN 2011????

No. I was asking.
Raide
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(08-03-2011, 09:46 PM)
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If D3 makes it this year, most other games won't get a look in from me :D
Tallshortman
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(08-03-2011, 09:46 PM)
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Did anyone get that moment of realization reading their upcoming list of games that Cabela's may be the best selling non Blizz, non CoD Activision game in the second half of the year?

Man I knew Activision never produced variety anymore but I didn't think it came down to this...
Mindlog
(08-03-2011, 09:47 PM)
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Diablo real money auction house shoutout. Nice. No Diablo 3 forecast in the year's fiscal forecast.

epic visceral gameplay.
Last edited by Mindlog; 08-03-2011 at 09:57 PM.
Majine
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(08-03-2011, 09:48 PM)
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I think they just confirmed no Diablo 3 in 2011.
HBroward
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(08-03-2011, 09:48 PM)
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Yes, they simply said a Blizzard game is not factored into their projections, not that there will not be one. They have to leave wiggle room. If they had it in the projections and it got delayed, it would be one more thing for the fans to bitch about, on top of the financial impact. This is standard, the same way EA has handled SWTOR.
Nirolak
Mrgrgr
(08-03-2011, 09:48 PM)
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Originally Posted by Majine

I think they just confirmed no Diablo 3 in 2011.

They said they're not putting it in their expectations yet.
erragal
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(08-03-2011, 09:51 PM)
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Originally Posted by HBroward

Yes, they simply said a Blizzard game is not factored into their projections, not that there will not be one. They have to leave wiggle room. If they had it in the projections and it got delayed, it would be one more thing for the fans to bitch about, on top of the financial impact. This is standard, the same way EA has handled SWTOR.

And looking at how fast people are to say 'confirmed no D3 in 2011' proves their strategy the right one. No news is the best news. They shouldn't even announce it...just release the game suddenly a week before SWTOR to no fanfare.
bill0527
um, I'll be right back
(08-03-2011, 09:53 PM)
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If ime reading the chart correctly, subscription revenue increase was almost solely PS3 and xbox 360? PC subscription revenue is almost the same as the previous fiscal year, yet they launched a new WoW xpac this past fiscal year. I wonder how many WoW subscribers have bailed at this point. I certainly would have expected to see a PC subscription increase in revenue just based on the WoW xpac. People must have bailed on it quickly for there not be an increase in revenue.
Kintaro
Worships the porcelain goddess
(08-03-2011, 09:54 PM)
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Originally Posted by erragal

And looking at how fast people are to say 'confirmed no D3 in 2011' proves their strategy the right one. No news is the best news. They shouldn't even announce it...just release the game suddenly a week before SWTOR to no fanfare.

Yeah, no. You really can't do that.
Deadbeat
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(08-03-2011, 09:54 PM)
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Originally Posted by erragal

They shouldn't even announce it...just release the game suddenly a week before SWTOR to no fanfare.

Would be devastating to EA. Since EA wants to play the competition game (which they are doing with BF3), why not?
Mindlog
(08-03-2011, 09:54 PM)
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Just restating the glaringly obvious again. They're most concerned with NA/EU combined hardware numbers. Worldwide install base is an antiquated unit of measure.
Evlar
Banned
(08-03-2011, 09:55 PM)

Since Blizzard Entertainment has not confirmed a launch date for its next global release, the company's calendar year outlook at this time does not include a new game from Blizzard in 2011.

That's an interesting way to phrase it.
Nirolak
Mrgrgr
(08-03-2011, 09:55 PM)
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Originally Posted by Deadbeat

Would be devastating to EA. Since they want to play the competition game (which they are doing with BF3), why not?

Sending out a game with zero marketing would certainly be devastating to someone...
erragal
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(08-03-2011, 09:56 PM)
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Originally Posted by Kintaro

Yeah, no. You really can't do that.

Obviously not. Tongue in cheek etc.
Danne-Danger
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(08-03-2011, 09:56 PM)
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Originally Posted by Nirolak

They said they're not putting it in their expectations yet.

http://www.youtube.com/watch?v=yCFB2akLh4s
snoopeasystreet
Banned
(08-03-2011, 09:56 PM)
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Really pushing 60FPS in MW3.
Wario64
works for Gamestop (lol)
(08-03-2011, 09:57 PM)
MW3 for Wii is no surprise
Paches
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(08-03-2011, 09:57 PM)
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Originally Posted by erragal

And looking at how fast people are to say 'confirmed no D3 in 2011' proves their strategy the right one. No news is the best news. They shouldn't even announce it...just release the game suddenly a week before SWTOR to no fanfare.

This is why you don't work in marketing :P
HotHamWater
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(08-03-2011, 10:00 PM)
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Elite apps on iPhone, Android, 360 and PS3 is a pretty great idea, though not entirely unexpected.
NBtoaster
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(08-03-2011, 10:01 PM)
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Originally Posted by Wario64

MW3 for Wii is no surprise

It is a little after MW2's absence.
erragal
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(08-03-2011, 10:01 PM)
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Originally Posted by Paches-EJ-

This is why you don't work in marketing :P

No, it's a joke. I'm aware of how marketing works and why it's important.
Gaylord Sweetwood
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(08-03-2011, 10:02 PM)
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How many subscribers did WoW lose this quarter? They lost 600K last, and while I doubt they duplicated that exodus, they still must have lost some.
miladesn
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(08-03-2011, 10:02 PM)
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"real world pokemon" oh oh .
HBroward
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(08-03-2011, 10:02 PM)
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Originally Posted by erragal

And looking at how fast people are to say 'confirmed no D3 in 2011' proves their strategy the right one. No news is the best news. They shouldn't even announce it...just release the game suddenly a week before SWTOR to no fanfare.

To be fair, Diablo 3 might be able to pull that off, in a hypothetical world where retail doesn't exist. The only franchise besides it that could maybe pull off a successful stealth release would be Half Life 3.
Nirolak
Mrgrgr
(08-03-2011, 10:03 PM)
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Originally Posted by Gaylord Sweetwood

How many subscribers did WoW lose this quarter? They lost 600K last, and while I doubt they duplicated that exodus, they still must have lost some.

They launched Cataclysm in China recently, so it might be up for a bit.
HotHamWater
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(08-03-2011, 10:04 PM)
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"Driving hard to launch Diablo 3 this year."

Heart of the Swarm at Gamecom/Blizzcon.
Majine
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(08-03-2011, 10:04 PM)
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"Driving hard for D3 this year".

Well!
blazinglazers
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(08-03-2011, 10:04 PM)
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Originally Posted by Gomu Gomu

I hope Mega64 do another skit for this one. There ain't no Halo this time.

Yes pls. Keep the joke going, Cabela vs. Bungie forever.

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