Activision issues record final earnings report

With publisher now folded into Vivendi Games' business combination, Guitar Hero maker crushes first-quarter outlook with $650 million in revenues.

It isn't every day that one company reports on another company's financial performance. However, with Activision Blizzard popping into existence as the world's most lucrative third-party publisher last week, and the Guitar Hero house's first fiscal quarter coming to a close on June 30, that leaves time for just one more pre-merger financial report from Activision.

Unsurprisingly, Activision's stand-alone performance has been good--quite good. As reported by Activision Blizzard, Activision logged yet one more record performance in its first fiscal quarter, announcing anticipated revenues of $650 million. That tally is $150 million higher than its projected first-quarter performance of $500 million, announced in May. The fiscal performance translates to between $0.21 and $0.23 earnings per share, up from the $0.13 initially projected.

"Activision's first quarter stand-alone net revenues and earnings were the highest ever for a non-holiday quarter," said Activision Blizzard president and CEO Robert Kotick. "Our significant overperformance in Q1 would have further added to our previously given stand-alone fiscal 2009 net revenues and earnings outlook, making it by far the largest and most profitable year in Activision's history."

The same old song and dance drove Activision's first-quarter performance. The publisher noted that Guitar Hero: On Tour, released for Nintendo's DS on June 22, now resides atop Activision's record books as its biggest North American launch for the popular portable. The publisher achieved equal success with Guitar Hero: Aerosmith, which was released June 29. Activision noted that the game had sold well enough to rank in its top-five best multiplatform launches in North America. The final big performer for the publisher's first quarter was the multiplatform release of Kung Fu Panda, a Dreamworks-licensed property.

Today's report represents the final stand-alone fiscal results from Activision Inc., but Kotick notes that the combined businesses' outlook remains wreathed in gold. "We are extremely excited about the additional possibilities created by the completion of our combination with Vivendi Games last week and remain very optimistic about the long-term opportunities," he said. "Both Activision and Blizzard Entertainment's businesses have maintained their momentum and Activision Blizzard is well positioned to exceed the financial goals set for the combined company."

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Discussion

18 comments
grambyte
grambyte

lots of money, but i hope they put a large ammount in the making of even better games!

Hungry_bunny
Hungry_bunny

That's a huuuge profit, and I'm pretty sure they haven't reached their peak yet.

ctburesch
ctburesch

eddy96_1 the numbers are before the Blizzard merger ...Activision is a quality game publisher so it is not surprising. Especially with the sales of Call of Duty 4 and Guitar Hero alone.

Pete5506
Pete5506

Yes its high but look at the games they are putting out

Sharvie
Sharvie

That's not surprising, and with other great games coming out, it could be even more.

Cube_of_MooN
Cube_of_MooN

Well they have made some good games lately, so it makes sense that their profits would increase.

wiifan001
wiifan001

And to think, they could make another billion with just 3 upcoming titles: Call of Duty: World At War, Guitar Hero Metallica, and Guitar Hero: World Tour. Not to mention they'll make even more with GH: Aerosmith and Gh: On tour cuz they've only been released for about a month.

km1498
km1498

Hope they use that money to make some good games.

eddy96_1
eddy96_1

im not surprised either since they had the blizzard machine behind them

Lum_Yatsura
Lum_Yatsura

They could cancel all internal or external development, end shipping of all existing titles, and fire all employees not essential to core operations... Yet still profit from WoW subscription fees alone for several years.

Neosword
Neosword

I still view EA as the only people looking to simply cash in, these guys can actually put out some good games.

Trapmaster01
Trapmaster01

The future looks good for Activision Blizzard.

carstairs
carstairs

650 million? Good for them, that'll help!

CosmoKing7717
CosmoKing7717

hope this doesnt give them the incentive to start cashing in everything...like they already are >.>

aznballer91
aznballer91

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