A Quick Look At Activision Blizzard’s Q1 Report: They’re Rich, Beeitch
Earlier today, Activision Blizzard held their Q1 2012 investor call. Predictably, despite recent setbacks including the sudden layoffs of a large number of support staff, earlier this year, the company is doing remarkably well. Uncle scrooge well.
As of Q1 2012, the company is reporting total current assets of $3.05 billion, down from 3.17 billion at the end of December, 2011. However, during Q1 they performed better than previous estimates, pulling in an impressive $1.17 billion dollars in net revenues, up from the $1.45 during the same period in 2011. However, due to increased expenses in 2011, particularly the development of Call of Duty Elite and Diablo 3, profits for the quarter were slightly down year over year, with net income at $384 million, compared to $503 million in 2011. Then again, comprehensive income is a slightly better picture. When foreign currency translation and unrealized gains are accounted for, Activision Blizzard’s total Q1 income is $423 million.
The slight majority of Activision Blizzard’s vast wealth comes from the Activision side of the family. Total Activision assets for the quarter were $271 to Blizzard’s $251 million. (Additional revenues from certain deferrals make up the bulk of the quarter’s 1.17 billion total Q1 assets). As you’d expect, the majority of income comes from the North American market, with Europe trailing close behind, and Asia significantly less. Console sales, at $686 million, generated the bulk of income, which makes sense considering the astounding success of Call of Duty: Modern Warfare 3. Online subscriptions, which must include World of Warcraft as Well subs as well as Call of Duty: Elite brought in an additional $256 million. PC sales were $126 million, and hand-held games brought in a relatively paltry $65 million.
Though the company reported lower year over year sales related to Call of Duty and World of Warcraft, Skylanders Spyro’s Adventure was a huge winner for the company, partially offsetting losses. In fact, it was claimed during the call that Skylanders merchandise actually surpassed Star Wars during the quarter. I’m sure George Lucas isn’t crying, but we can all make an educated guess as to what the kids want for Christmas.
Some further notes:
* As I said, Skylanders has, supposedly, bested Star Wars in the licensed merch game, with 30+ million toys sold during Q1. That is, frankly, astonishing.
* Call of Duty: Elite has been a huge hit. They report 2 million total premium anual subscribers, and 10 million total registered users.
* The company reports 50 million monthly active users ‘across all franchises’
* They also claim 40 million active monthly Call of Duty users.
* World of Warcraft annual pass subscriptions have reached 1.2 million, driven in part by access to Diablo 3 with purchase; they did acknowledge overall participation in WoW is down, but declined to provide actual specifics.
* Over 2 million people have participated in the Diablo 3 beta.
All in all, the state of Activision Blizzard is, frankly, awesome. Even with declining World of Warcraft participation and an increase in expenses due to the development of soon-to-be launched properties, they’re literally raking in money. The full report can be viewed here.