Activision Blizzard Q2 revenues down but beats expectations

Activision has seen its revenues fall, down from $1.15bn in 2011 to 1.08bn in 2012, for the quarter ending June 30th, 2012.

Yet this is better than the company’s predictions, and as a result it has raised its net revenue outlook for the calendar year to 4.33bn (up from 4.2bn). It is the fifth consecutive quarter that Activision Blizzard has beaten its expectations.

Digital revenues have helped a great deal for Activision. $343m was generated by digital channels, which is 32 per cent of the company’s total revenues.

There was a few boasts to be had by Activision Blizzard in its press statement. The firm claims to have published the three biggest games (in terms of revenue) for the past year – including Skylanders: Spyro’s Adventure (which of course includes the toys), Diablo III (which has impressively sold 10m units worldwide) and Call of Duty: Modern Warfare 3.

It wasn’t all good news. World of Warcraft is still doing the business, with 9.1m subscribers. However, that is a drop of 1m paying users in less than a year. Most of those losses, according to Blizzard, are from Eastern users. Users that Activision hopes to win back over with a free-to-play Call of Duty game for the Chinese market.

Here is the supplied quote from Activision Blizzard CEO Bobby Kotick: "On a non-GAAP basis, we delivered record Q2 and first halfnet revenues, operating income and earnings. Our performance was driven by strong audience demand for our great games. We are very excited to have announced our expanded investment in China through Activision Publishing’s agreement with Tencent to bring the Call of Duty franchise to the Chinese market.

"For the first six months, we had the top three best-selling games in North America and Europe with Activision Publishing’s Skylanders Spyro’s Adventures and Call of Duty: Modern Warfare 3, and Blizzard Entertainment’s record setting Diablo III.

"For the remainder of the year, we are excited about our product slate which includes Activision Publishing’s Skylanders Giants and Call of Duty: Black Ops II, and Blizzard Entertainment’s World of Warcraft: Mists of Pandaria. While we are increasing our financial outlook for full year 2012, we remain cautious given economic uncertainty, risks to consumer spending especially during the holiday season and the recognition that the majority of our key franchise launches are still ahead of us."

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