Activision Blizzard posts $1.15 billion quarter

Call of Duty publisher reports better-than-expected results through June, profits jump 53% to $335 million; WOW subs dip to 11.1 million.

Beating expectations is becoming a trend with Activision Blizzard this year. Following on from a solid first-quarter performance, the gaming megapublisher reported guidance-topping revenues and profit for its second fiscal quarter, which concluded June 30.

World of Warcraft subs may be down, but revenue is up.

Total revenues for the three-month period came in at $1.15 billion, up 19 percent from the $967 million Activision Blizzard brought in for the same period a year ago. Net profit saw an even greater jump during the quarter, rising 53 percent year-over-year to $335 million.

Breaking down its performance, Activision Blizzard called out the fact that it turned in a record digital revenue performance during the quarter. Specifically, 37 percent of total revenues came from digital sources, a figure that was led primarily by Blizzard Entertainment's World of Warcraft franchise.

Though the game's total worldwide subscriber based dipped to 11.1 million during the quarter, Blizzard said it saw an uptick in revenue for the quarter. As part of a post-earnings conference call, Blizzard president Mike Morhaime attributed this increased revenue to the game's presence in China. Morhaime also noted that Blizzard increased its investment in product development during the quarter.

Of course, one other key contributor to Activision Blizzard's top and bottom line was the Call of Duty franchise. Citing figures provided by NPD, CharkTrack, and Gfk, Activision Blizzard said Call of Duty: Black Ops was the overall best-selling game in the US and Europe during the first half of 2011. Having launched last November, Black Ops has now sold about 25 million units lifetime-to-date.

Though down from last year, Activision Blizzard has a number of releases scheduled for its July-September quarter. The just-announced Call of Duty: Black Ops - Resurrection downloadable add-on is the most notable of these. Other releases include Silicon Knights' X-Men Destiny (September 27) and Cabela's Big Game Hunter 2012.

Activision Blizzard also announced Cabela's Hunting Party today, saying it will arrive before September on the Xbox 360. The publisher noted that the game will be "Kinect-ready."

Given its expectation-beating performance during its first two quarters, Activision Blizzard also raised its full-year earnings guidance. The publisher now expects to reap $4.18 billion in revenue this year, up from original projections of $4.05 billion. Investors have thus far reacted favorably to the company's performance, with shares rising about 1.6 percent to $12.01 as of press time.

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37 comments
foufoufun0
foufoufun0

@GamerLegend10 actualy, its not even announced, its just a leak of a release schedual from blizzard. And we can't even be sure if its real or fake, the releases matche for other blizzard games (diablo 3, sc2 exp, wow exp...) and there is that game code named Titan planned for 2015. Also there was for a while a job announcement for a next-gen mmo on wow/bnet website. So if the project is real, this is must not be a final name, the game is probly only on paper right now and it may just be announced arround 2013 if they plan to do public beta tests. And aparently its suposed to be a new franchise.

aamir69
aamir69

Now can somebody make me understand this BS from activision. I bought this game when it came out since tryarch was involved hoping this game would be as good as COD WaW. I stopped playing this game back then coz of this shuttering problem. Then installed again in march hoping they have fixed it. And now again in august the problem is still there. I know some people may not have it but for sure lot of people have this issue with them. Do they even care? I don't care even MW3 is so good that it gives you an orgasm every 10mins of gameplay, but i am not buying it.

GamerLegend10
GamerLegend10

@hitboy806 yeah i just checked, the game im thinking of is called Titan, its being developed by blizzard, but not much information has been released yet.

GamerLegend10
GamerLegend10

@hitboy806 i thought it was something by blizzard...but maybe not, there are so many games being announced its hard to keep track. im not thinking of diablo 3, but thanks anyway :)

hitboy806
hitboy806

@gamerlegend10 I think your thinking of diablo 3

GamerLegend10
GamerLegend10

WOW intrigues me...but im not sure if i will ever try it, because i would probably get way too addicted. am i right that Blizzard are making a new MMO, which is planned to be even more popular than WOW? im sure ive heard that, but cant remember the details.

Richardthe3rd
Richardthe3rd

Investors: We think you should add micro-transactions to Diablo 3. Blizzard: But that's... Investors: ... not a request.

hakkafixi
hakkafixi

Like beating the same boss over and over again Spartan? Sorry, someome who defends wow cannot tell someone what to do with his/her life.

jlm2k5
jlm2k5

It's clear in all of this that MW3 is just a cash cow. Nothing more. No innovation or development on ANY level. The COD franchise to these exec's is a magic lamp that they rub every now and again and money comes out( Thanks in large part to COD nutheads out there). But eventually, just like guitar hero, it'll end, and i hope this is sooner rather than later.

Sigil-otaku
Sigil-otaku

@eynonz I agree, I like the idea of selling games via an in-game system (it saves you from get cheated by some ebay scammer) but the fact they have 3 separate charges just for putting an item up and taking your money back to your bank? That's ridiculous and all I can imagine is selling the best set in the game and taking home 2 pounds (or maybe 40p) while activision blizzard see's 10 pounds. Ebay charges too much and now Blizzard is following that model to charge us 3 times just to sell an item.

Spartan-1657
Spartan-1657

So many haters regarding WoW. Why do you want to see the game die so bad? Because its more popular and better than other MMO's? Like I said before, there is a reason why its still number 1. Just because you don't like it, doesn't mean that millions of others don't. Get over it. If seeing the subs on WoW accounts drop is really what is getting you off, then you guys really need to find something to do with your lives.

MrGoldfish1
MrGoldfish1

Mojang is better! ^_^ Blizzard has World of Warcraft. Mojang has Minecraft.

Triton
Triton

Better bank some of that money, with the new games coming out, it's gonna be a long cold winter for them coming up.

eynonz
eynonz

There making all this money and there still destroying Diablo III in order to make more money for themselves............ For shame Blizzard, For Shame!

vallan2
vallan2

I'm a bit appalled at how people will pour money into the same thing, allowing the company to churn out the same old same old, and repackaging it as new. Don't get me wrong, I like the CoD series, but I'm getting a bit tired to the formula, and WoW has been out for quite a while...I think it's time for a change, but consumers need to demand the change.

N0madS0uL
N0madS0uL

In my opinion I hope WoW dies out soon. It is/was a great game but new games are coming out with new developers, new ideas, game engines etc and they should be supported. It is time Blizz got dethroned and let some new MMO come in like SWTOR. Blizz have made huge amounts of money and with Diablo 3 coming out and its "new" real currency auction house Blizz will be raking in even more of our hard earned cash (which lately has become hard to come by). So I would love to see the subs dip lower and lower. Besides competition is healthy and us gamers I think would be happy to spend our WoW sub on a new game with a change of pace and just a whole new environment (not too mention new gfx etc)

hakkafixi
hakkafixi

I'll just be happy that wow subscriptions are decreasing.

sweet_jcs
sweet_jcs

There aren't 11 Million people actively playing wow, there are 11 million people still subscribed. There's a huge difference.

dre256x
dre256x

I wish there subs drop anywhere below 10mil.. They have alienate alot of peeps with this xpac. Everything feels grindy, with all the limitation cap they haven't implemented because the see people was finishing here content and maxing points too fast.. Way to take steps back. Also they should rewrite the engine to get it up to snuff and delay the next xpac...

ForsakenWicked
ForsakenWicked

I'm glad to read this because of Blizzard but at the same time I irks me because of Activision. I just wish all those little teens would stop their trends thus not buying their yearly Call of Duty. I'm happy anyways because nothing lasts forever and some day, a new game will dethrone COD from the hotspot and the trendies will move along leaving Activision with pretty much no worthy franchises (besides those of Blizzard).

OJ_the_LION
OJ_the_LION

Blizzard doing well is to be expected, they are renowned for their quality after all. Despite the complaints I hear sometimes, they're often pretty baseless, and Blizzard's yet to disappoint me with a game. That said, some recent announcements about Diablo III have made me skeptical. Activision, on the other hand, is the epitome of the evils that pandering to investors wreaks on the industry as a whole and creativity in particular. Call of Duty's not going to last forever, particularly with how exploitative Activision has been with it recently, and without that they don't have much of a catalogue outside of Blizzard. We'll see how well they're doing in 2-3 years time.

juliano001
juliano001

Investors are the blight of games. They want huge PROFIT. So the companies need to do as they say. Costumer, haha. You are the cow here. Pay the game and shut up.

iowastate
iowastate

I tried EQ but didn't really care for it I however I do keep coming back to WoW

Twiztid-Maddox
Twiztid-Maddox

[This message was deleted at the request of the original poster]

decoy1978
decoy1978

@Stonecutters908 People also play EQ still too. You can never put a good MMO down. EQ just had a the perfect mix of mechanics that catered to people back then and WoW flipped that as well when that came out, hence it was successful Theres gonna be another MMO one day thats gonna put a spin on what WoW did and it will be the new hotness... (it wont be a FF I can tell you that =P)

method115
method115

Always glad to hear Blizzard is doing well the company produces nothing but quality games.

Stonecutters908
Stonecutters908

I don't know if I just require newer experiences more often or what, but I am still shocked there are 11 million people still playing WoW regularly.

XanderZane
XanderZane

Don't care about Black Ops at all. All I want is MW3 and BF3. That'll be enough for me for the winter. ********************************************************* @gatsbythepig I am so glad I purchased their stock last year. -------------------------------------------------------------------------------- I'm so glad I've been purchasing IBM stock every month since 2002. lol!! Went from $65 a share to $183.

okassar
okassar

1.15 billion profit? Like damn I would figure that's revenue, but apparently not. Activision just knows how to do business....They're main goal isn't to maximize gamer satisfaction. They just want to maximize their numbers. Usually quality and numbers go hand in hand, but suckers mess up that equation. #ComeonallyousuckersthatarebuyingMW3andallitsDLC

gatsbythepig
gatsbythepig

I am so glad I purchased their stock last year.