Activision Reports Strong Earnings

Santa Monica-based publisher Activision announced in its latest financial report that is has exceeded analysts' earnings expectations for the second quarter ended September 30. The company reported an increase in net revenue in the quarter to US$144.4 million from $115.4 million for the second quarter of the previous fiscal year. Operating income rose 170 percent to $9.5 million, as compared with $3.5 million for the same period last year. Robert Kotick, co-chairman and CEO of Activision, cited the popularity of its high-profile franchises such as Tony Hawk's Pro Skater, Spider-Man, and X-Men as reasons behind the favorable earnings report.

"We continue to be the fastest growing U.S. console software publisher and the only console publisher to show triple-digit year-over-year growth on a monthly basis in dollars for the last eleven consecutive months, according to NPD TRSTS," stated Kotick. "Our leadership position on the PC also continues to grow. For the quarter, our US retail PC sell through increased 18 percent over the prior year, as compared to 9 percent market growth during the same period, according to NPD TRSTS."

"With U.S. debut of the PlayStation 2 just three days away and the upcoming holiday season, we are optimistic about our continued market momentum. We have two titles for the PlayStation 2 for this holiday season - Orphen: Scion of Scorcery and Sky Odyssey and 12 other games in development, including four extreme sports titles," he continued. "In addition, our holiday slate includes such highly anticipated games as Spider-Man for the Nintendo 64, Tony Hawk's Pro Skater 2 for the PC, Dreamcast, and Game Boy Color, Disney/Pixar's Buzz Lightyear of Star Command for the PlayStation, Dreamcast, and Game Boy Color, and LucasArts' Star Wars Demolition for the PlayStation and Dreamcast."

Kotick reiterated Activision's commitment to upcoming next-generation platforms saying that the company has six games in various stages of development for the Microsoft Xbox and the Nintendo Game Boy Advance platforms.