Activision reports solid earnings, raises guidance
Momentum swings toward the house that Spidey built; revenues, profits climb. Guidance for full fiscal year 2005 up $50 million.
GameSpot may get a commission from retail offers.
Unencumbered by the threat of a nasty lawsuit (unlike THQ) and suffering little from cutthroat competition (unlike EA, after the ESPN games price cut), Activision has been given the leeway to rise on its own merits--which it did in rather grand style the past three months, turning in the best non-holiday quarter in the company's history.
In the company's earnings call today, president Ron Doornink told investors that Activision had impressive revenues of $310.6 million for the July-September quarter this year, an increase of $193 million, or 164 percent compared with $117.5 million for the same quarter a year ago. Profit tallied was $25.5 million, compared with a net loss for the same quarter last year of $10 million.
Not unexpectedly, it was the Spider-Man and Doom franchises that contributed the lion's share of cash to the company's coffers. Spider-Man 2 was Activision's top-selling game during the most-recent quarter, and Doom 3's August release was the company's biggest PC launch ever.
Dramatically, Doornink raised the fiscal year 2005 guidance by $50 million. Currently, he sees the company driving $1.15 billion in revenues for the fiscal year ending March 31, 2005.
Looking to the last month in the current fiscal year, Doornink said that the release of Doom 3 for the Xbox and the Doom 3 expansion pack, Doom 3: Resurrection of Evil, for the PC version, are both on the books for release in late March 2005 (though, he added, id Software would ultimately decide on the final release date).
Got a news tip or want to contact us directly? Email firstname.lastname@example.org