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.
Hot Stories
Newsmakers
-
Dragon Age: Origins Interview with Ray Muzyka
We chat with Ray Muzyka about some of the features in Dragon Age: Origins. Full Story
- Posted Jul 8, 2009 4:06 pm PT
-
Left 4 Dead 2 Doug Lombardi Interview
We talk to Doug Lombardi about Left 4 Dead 2 at a recent preview event in London. Full Story
- Posted Jul 3, 2009 4:42 pm PT
Featured Stories
-
Sony dismisses Activision threats, PS3 price cut rumors
Sony Corp. CEO Sir Howard Stringer brands third-party publisher's comments as "noise," SCEA CEO Jack Tretton says other consoles don't deliver the same value. Full Story
- Posted Jul 8, 2009 1:15 pm PT
- 1063 Comments
-
PS3 MGS4/Killzone 2 bundle now available
Best Buy begins offering rumored $400 retail configuration, which packs in 80GB console with nearly $90 of top-rated games. Full Story
- Posted Jul 7, 2009 11:19 am PT
- 502 Comments
-
Battlefield 1943 suffers server snafu
EA Dice's multiplayer-only downloadable shooter experiencing matchmaking technical difficulties after Xbox 360 launch this morning. Full Story
- Posted Jul 8, 2009 12:48 pm PT
- 166 Comments
-
Blizzard: Free-to-play WOW 'possible'
Lead designer Tom Chilton says the multiplatinum MMORPG champion could abolish monthly subscription plan by adopting microtransaction system. Full Story
- Posted Jul 7, 2009 12:43 pm PT
- 364 Comments
-
Square Enix retires Eidos publishing label
Japanese pub consolidates operations in Europe and NA, confirming some headcount reduction; British company's name will live on through dev studios. Full Story
- Posted Jul 7, 2009 11:15 am PT
- 150 Comments
Submit News
Recent News
-
Analyst expects 20% game sales slide in June
Pacific Crest Securities' Evan Wilson expects Fight Night Round 4 to break 1 million in disappointing month, says recession may be hitting games harder...
Site Blogs
-
Battlefield 1943 Review Coming Monday
Battlefield 1943, the latest entry in the venerable Battlefield series, arrived on the Xbox Live Marketplace and PlayStation Network this...
31 Comments