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[Rösti]

Correct document: http://files.shareholder.com/downlo...993F1/Q2_2015_ATVI_Earnings_Press_Release.pdf

Conference call: http://edge.media-server.com/m/p/tg2hznwj

For the quarter ended June 30, 2015, Activision Blizzard’s GAAP net revenues were $1.04
billion, as compared with $970 million for the second quarter of 2014. On a non-GAAP basis, the
company’s net revenues were $759 million, as compared with $658 million for the second quarter of
2014. For the second quarter, GAAP net revenues from digital channels were a Q2 record $569
million and represented a Q2 record 55% of the company’s total revenues. On a non-GAAP basis, net
revenues from digital channels were a Q2 record $611 million, growing 27% year-over-year.

For the quarter ended June 30, 2015, Activision Blizzard’s GAAP earnings per diluted share
were $0.29, as compared with $0.28 for the second quarter of 2014. On a non-GAAP basis, the
company’s earnings per diluted share were $0.13, as compared with $0.06 for the second quarter of
2014.

Year-to-date non-GAAP revenues and EPS were up 2% and 12%, respectively, year-over-year
(13% and 56%, respectively, at constant FXA), given strong engagement and recurring digital
monetization trends on our year-round monetizing franchises.

Bobby Kotick, Chief Executive Officer of Activision Blizzard, said, “Our strategic focus on
expanding our franchise portfolio with captivating and original new intellectual property, innovating
on new platforms, and expanding into new geographies is reflected in our results. We outperformed
our Q2 targets and last year’s results on revenues, digital growth, and earnings per share. These
strong results and the excitement for our future games have driven us to raise our full-year outlook.”

Kotick added, “Our audience size and the total amount of time people spend with our
franchises continue to grow. In the second quarter, our monthly active usersB grew by 35% year-overyear,
and the time our communities spent playing our games grew by 25% year-over-year.”

Kotick continued, “I want to thank our extraordinarily talented employees around the world.
They pour their passions into creating the most fun and epic entertainment experiences for our
audiences, and our superior financial performance is a result of their dedication.”

Selected Business Highlights

• Blizzard Entertainment’s Hearthstone®: Heroes of Warcraft™ and Heroes of the Storm™, and Activision Publishing’s Destiny combined now have more than 70 million registered players and over $1.25 billion in non-GAAP revenues life-to-date.
  
• Activision Publishing had its strongest ever second quarter engagement and digital monetization, with the most Q2 monthly active users (MAUs) in its history, up more than 25% year-over-year, and the largest Q2 and first half digital revenues in its history.
  
• Activision Publishing continues to have 2 of the top 5 videogame franchises in North America and Europe year-to-date, with Skylanders, including toys and accessories, achieving the No. 1 spot. Including toys and accessories, Skylanders was the No. 1 console title and kids console title year to date, and outsold the No. 1 action figure line in North America and Europe. Activision Publishing also continues to have 3 of the top 5 next-generation games life-to-date.
  
• Activision Publishing’s Call of Duty franchise Q2 non-GAAP revenues increased by a doubledigit percentage year-over-year due to strong continued sell-through of Call of Duty: Advanced Warfare and growing online revenues per user across the franchise. Season pass, downloadable content, and micro-transaction offerings have helped drive increased engagement and monetization. Call of Duty: Advanced Warfare remains the No. 1 next generation game life to date, as it has been since its launch nine months ago
  
• Activision Publishing and Bungie released Destiny’s highly acclaimed second expansion, House of Wolves, which had a strong attach rate and engagement. Destiny now has over 2 billion hours of gameplay since launch, which amounts to an average 100 hours of gameplay for each of Destiny’s over 20 million registered players.
  
• Blizzard Entertainment had the largest online player community in its history, with Q2 MAUsB up 50% year-over-year. Though World of Warcraft® ended the quarter at 5.6 million subscribers, Blizzard revenues are up year-over-year based on strong performance across the expanding Blizzard portfolio. On June 23, 2015, Blizzard Entertainment released, Fury of Hellfire, one of the largest non-expansion content updates to date for World of Warcraft. This new content helped stabilize the subscriber number towards the end of the quarter. World of Warcraft remains the No. 1 subscription‐based MMORPG in the world.
  
• On April 2, 2015, Blizzard Entertainment launched Blackrock Mountain™, the second Adventure for Hearthstone: Heroes of Warcraft. The release of Hearthstone on iOS and Android smartphones followed on April 14, 2015. Key engagement metrics, which were already very strong, nearly doubled year over year, largely on account of the new content and new platforms
  
• Blizzard Entertainment launched Heroes of the Storm on June 2, 2015 with strong critical reception. The Eternal Conflict, a series of content additions based on the Diablo® universe, was launched in June and is still ongoing, and players have responded with positivity and excitement. Blizzard announced in May that Heroes of the Storm had been added to the Road to BlizzCon® program, and major tournaments are already underway globally.
  
• On April 23, 2015, Sanctuary’s gates were thrown open to all Chinese heroes, as Blizzard Entertainmentʹs award‐winning action role‐playing game Diablo® III: Reaper of Souls™ went live in China. Diablo III has now sold-through over 30 million units life-to-date globally.
  
• Blizzard Entertainment achieved record revenues and MAUsB in China this quarter, driven by the popularity of Diablo III, Hearthstone: Heroes of Warcraft, and Heroes of the Storm.

 

[Rösti]

The conference call has started.

 

[AHA-Lambda]

WOAH, wait!

Activision Publishing continues to have 2 of the top 5 videogame franchises in North America and Europe year-to-date, with Skylanders, including toys and accessories, achieving the No. 1 spot. Including toys and accessories, Skylanders was the No. 1 console title and kids console title year to date, and outsold the No. 1 action figure line in North America and Europe. Activision Publishing also continues to have 3 of the top 5 next-generation games life-to-date.

Skylanders is the number one franchise in EU and NA??

 

[Rösti]

They are apparently making a mobile initiative for Skylanders. More information coming next week.

Also, Blizzard:

Next expansion will be greatly tied to player feedback on Warlords of Draenor.