Activision's Q4 numbers down

Publisher posts lower revenues and a net loss for fourth quarter; for the full year, revenues hit new high, while profits shrink by two-thirds.

Activision reported its earnings for its fourth quarter today, and the company's revenues and bottom line failed to live up to its numbers from the same period the year before.

For the three months ended March 31, Activision posted revenues of $188.1 million and a net loss of $9.2 million. Last year, the publisher's fourth-quarter figures showed $203.9 million in revenues and a profit of $3.6 million.

For the full fiscal year, Activision managed to rack up the largest revenues in the company's history, posting total sales of nearly $1.47 billion, compared with almost $1.41 billion the year before. The company also managed to turn a profit for the full 12 months, although a much smaller one than it had enjoyed the previous year. Activision posted $42 million in fiscal year 2006, compared to $138 million for fiscal year 2005.

Activision CEO Robert Kotick explained the slipping numbers by saying the company was starting to feel the impact of the console transition. He put a positive spin on the numbers by pointing to the company's record revenues, noting that they were up for the 14th consecutive year. That streak isn't expected to continue, however. This fiscal year, Activision is projecting revenues to come in at slightly over $1 billion.

As for the current quarter, the publisher is expecting $145 million in revenues (down from last year's first-quarter take of $241 million) and a loss per share of $0.11 (last year Activision's loss-per-share was $0.02).

However, Activision is echoing recent analysts' assessments in suggesting that the console transition will be over next year, after which the company expects the bottom line to improve. For its fiscal year 2008, Activision is projecting a return to record revenues, expecting to rack up more than $1.6 billion.

31 Comments

  • Mechfiend619

    Posted May 6, 2006 6:08 pm PT

    true crime onws

  • pat360xb

    Posted May 6, 2006 3:24 pm PT

    what everyone else said

  • MagickB3ats

    Posted May 5, 2006 7:49 pm PT

    Good games please. No more True Crime.

  • Troy-M

    Posted May 5, 2006 10:48 am PT

    Funny how Q4 and Activision are in the same paraphrased title--at first glance, I thought it was referring to Quake 4 sales and I said to myself "is anyone surprised at all?" Quake 4's multiplayer is HORRIBLE, btw. =P

    Anywho, get your act together, Activision!

  • advent6

    Posted May 5, 2006 8:01 am PT

    Fire some more "little people", who make the little wages; that will help things. I am sure that is what they will do.

  • samuelroberts

    Posted May 5, 2006 6:32 am PT

    Thanks for making True Crime half complete, you money laundering windbags!

    They need a different direction with their superhero games. X-Men Legends just doesn't cut it. Spidey 2, now that was a game.

  • khggame

    Posted May 5, 2006 5:21 am PT

    They need to make better games

  • chrisdojo

    Posted May 5, 2006 4:46 am PT

    the same news as every other game company.......

  • azizrulez

    Posted May 5, 2006 1:06 am PT

    pull your socks up
    and lose the complacency

  • KayDash

    Posted May 4, 2006 11:33 pm PT

    Quake 4!!! They need to release a quake 4 expansion pack. Already, ETQW is going to boost their sales.

  • Tranceplant

    Posted May 4, 2006 8:34 pm PT

    Besides Call Of Duty 2... what was the last good Activision game?
    ...
    There you go.

  • kingofps3

    Posted May 4, 2006 8:14 pm PT

    1 billion !!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • abe2cool4u

    Posted May 4, 2006 8:04 pm PT

    U might do better if u stop realeasin ur same games yr after yr cough*tony hawk*cough, and don't get me rong tony hawk games are good, once every 3 yrs not yr single yr!

  • ebonyflame

    Posted May 4, 2006 6:41 pm PT

    Here's a clue Activision, let the true crime games die as they have always been crap with great advertising.

  • jahnee

    Posted May 4, 2006 5:51 pm PT

    some cod3 witht the unreal engine 3 will do the trick, and than also release it on ps3 and xbox 360 both and also pc

  • tr00pa_26

    Posted May 4, 2006 5:26 pm PT

    yeah i agree no mopre tony hawk and other games that just doesnt work

  • drangel_jam

    Posted May 4, 2006 5:26 pm PT

    COD 2 for the PS3 would bump the revenues, wouldn't!?

  • SoralinkGS

    Posted May 4, 2006 5:21 pm PT

    Make GUN 2 cooler then GUN. I loved GUN....I WANT GUN 2!

  • Orasion_Seiz

    Posted May 4, 2006 5:18 pm PT

    they better make good games if they want to be a big company

  • NeoJedi

    Posted May 4, 2006 5:00 pm PT

    Even if you make quality games right now, your bottom line will be down nonetheless. The industry is going through a transitionnal year.

  • Hybrid094

    Posted May 4, 2006 4:17 pm PT

    Nah, not always. They need more sequels, stat!

  • mars_elliot

    Posted May 4, 2006 4:10 pm PT

    Quality games makes a quality bottom line.

  • codeegg

    Posted May 4, 2006 4:06 pm PT

    Make a good james bond game , and kick EA's butt

  • natiko

    Posted May 4, 2006 4:03 pm PT

    You need to make good games to get profits.

  • TargetDog

    Posted May 4, 2006 3:45 pm PT

    Bah.

  • soroush7

    Posted May 4, 2006 3:37 pm PT

    Keep making better games.

  • soroush7

    Posted May 4, 2006 3:36 pm PT

    Start making better games.

  • pungaboy

    Posted May 4, 2006 3:24 pm PT

    Please, more Ultimate Spider-man!

  • tiggerdn

    Posted May 4, 2006 3:23 pm PT

    please no more tony hawk games!

  • Biggs6575

    Posted May 4, 2006 3:22 pm PT

    ^ What he said

  • represent32

    Posted May 4, 2006 3:16 pm PT

    Keep making games like true crime and thats what you'll get

advertisement

Hot Stories

Newsmakers

Featured Stories

Submit News

Got tips? Send them in!