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Activision-Blizzard Profits $99m in Q4 11' on $1.407b in Revenue - News

by VGChartz Staff , posted on 09 February 2012 / 15,367 Views

Activision-Blizzard has reported strong results for both the final quarter of 2011, and all of 2011 today. The company had revenue of $1.407b in the December 2011 quarter, down $20m from the previous December quarter. Profit jumped to $99m in the December 2011 quarter, from a $233m loss in the previous December even with some revenue deferred into the next quarter both times.

For the year ending December 2011, Activision-Blizzard made a staggering amount of money for a third party publisher - $4.755b in revenue with profit of $1.085b. During the 2010 year, revenue had reached $4.447b, with 'only' $418m in profit.

Activision-Blizzard expects revenue to reach $4.15b in 2012, down 13% from 2011. Profit is projected to reach $725m for the year down a third from 2011. In the March 2012 quarter, revenue is forecast to tally $965m, with profit coming to about $253m. Much of the Q1 2012 revenue (on a GAAP basis), around $440m it looks like, will have been the money pushed from late 2011 into early 2012.

Activision-Blizzard highlights for the quarter and the year included:

- World of Warcraft is the largest subscription MMO, with 10.2m users.

- Call of Duty Elite (another subscription service) has 7m registered users, including 1.5m premium registered users.

- Over $1.6b in digital revenue in the US & Europe making Activision-Blizzard the largest third party for digital in both regions. Digital revenue grew to over 1/3 of total revenue in 2011, a higher share than 2009-2010.

- Annual GAAP revenue beat the original forecast by 20%, with profit beating the initial forecast by over 60%.

- The company also believes it can turn Skylanders into a billion-dollar franchise given how the first game has performed so far.

Activision-Blizzard also provided quarterly revenue breakdowns for Oct-Dec 2011 as compared to the previous December quarter:

- Revenue increased on Wii from Q4 2010 to Q4 2011, rising from $141m to $166m - mainly on Skylanders. Revenue also increased for X360, growing to $300m from $281m. 3DS grew to $26m from nothing, and PS3 remained flat at $259m both quarters. Console revenue increased 6% overall vs. late 2010, with portable revenue up 2%.

- PC & Other revenue dipped to $123m in Q4 2011 from $124m in Q4 2010. Online subcriptions (MMO & COD elite mostly) fell pretty substantially to $268m from $340m. PSP and PS2 each fell to $3m from $6m in the prior December quarter. DS declined to $56m from $77m as well.

As the December quarter was not only the end of Activision's fiscal year, but the actual year, it is worthwhile to look at where the company earned its revenue in 2010 and 2011:

- Revenue increased in 2010 to 2011 on X360 growing from $1.033b to $1.140b, PS3 grew from $854m to $935m, online subscriptions (MMOs & COD Elite memberships mostly) grew from $1.230b to $1.357b, PC & Other grew to $374m from $325m, and 3DS grew to $35m from nothing. European revenue also increased slightly in 2011, to $605m from $600m. Console revenue increased 5% overall against 2010 over the entirety of 2011.

- Revenue declined in 2011 for Wii, which fell to $351m from $408m in 2010, for PS2 which fell to $13m from $35m in 2010, PSP which fell from $16m to $15m, and DS which fell from $168m to $117m. North American revenue dropped to $718m from $734m, with Asia-Pacific revenue down to $84m from $93m. Portable revenue fell 9% in 2011 against 2010, despite the increase in Q4 2011 as compared to Q4 2010.

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Aj_habfan (on 09 February 2012)

Could and should be higher, but at least they're not losing hundreds of millions each quarter like EA.

  • +3
dark_gh0st_b0y (on 09 February 2012)


after huge Call of Duty and Skylanders success, and they only profited that much...

  • +3
enrageorange dark_gh0st_b0y (on 10 February 2012)

its been said before but it got thumbs downed for whatever reason. Activision defers a lot of its q4 revenue to quarter 1 next year. It clearly states they profited 1billion for the year... which is mostly black ops sales because revenue from 2010 holidays got moved to 2011 calendar year.

  • -1
dark_gh0st_b0y dark_gh0st_b0y (on 11 February 2012)

wait, you mean the profit from 20m MW3 sold does not count for Q4 at all!?

  • 0
BasilZero (on 13 February 2012)

Wouldnt be surprised after all they made from CoD and from what their making in WoW D:

  • 0
happydolphin (on 10 February 2012)

Guys, I still have a hard time understanding some of the text in the 1st 3 paragraphs (especially the 3rd one). It would help if you would mention at the start of this type of article for instance what the company's full year period is. Bullet forms would really help.

If you could begin the article with a list of statistics (in order, those constructed from others come later in the list), and then make a paragraph on them, it would greatly help readability. I've been reading these for a few years now and I still have a hard time following.

For instance, you can begin with "Activision-Blizzard has reported strong results for both the final quarter of 2011, and all of 2011 today." and then put in a box with formatted statistics. Here are some examples (top header is underlined, headers are bolded):

Activision-Blizzard full year: Jan to Dec

December 2011 Q4 (results):
Revenue: $1.407b (down 20m against previous Dec)
Profit: $99m (up from 233m loss against previous Dec)

Full Year ending Dec 2010 (results):
Revenue: $4.447b Profit: $418m

Full Year ending Dec 2011 (results):
Revenue: $4.755b (up 308m) Profit: $1.085b (up 667m)

Full Year ending Dec 2012 (projections):
Revenue: $4.15b (down 13%) Profit: $725m (down 33%)

March 2012 Q1 GAAP (projections):
Revenue: $965m Profit: $253m

March 2012 Q1 Non-GAAP (projections):
[more numbers]

Some revenue deferred into next quarter both times.

Even a table would be nice. You could break these down so as to discuss them bit by bit (a bit like Seece does in the Gap articles), each box with its discussion. That would top! Thanks as usual, TheSource and team.

  • 0
Ail (on 10 February 2012)

Oh and for Aj_hafban EA is expected to post a 150 million$ or so of profit for the fiscal year 2012 ( April 2011 to March 12), Nothing like the billion$ Activison did, but not the loss you're mentioning either...

  • 0
Aj_habfan Ail (on 10 February 2012)

For them to make $150m profit for the period of April 11 - March 12 they need to make around 500M profit this coming quarter, after losing 322M in the same quarter last year. Not gunna happen

  • +1
Ail (on 10 February 2012)

The reason Q4 is always their weakest quarter is that they deferred most of the CoD revenue to Q1 and Q2 of the following year so you have to look at the result on a yearly basis. This Q4 they deferred one billion$ of revenue. The side effect is that Q1 and Q2 are always their best quarter and those are the quarters where they usually don't release much software at all.......

  • 0
Ail (on 10 February 2012)

Lol at the comment about Activision being inefficient by the way. They have some of the highest profit margins..

  • 0
Ail (on 10 February 2012)

Once in my life I wish to see someone making a comment here that actually read the yearly report before, instead of just commenting the title...
Activision made 1 billion$ of profit in 2011, what more do you want ?

  • 0
happydolphin Ail (on 10 February 2012)

I told you to make a thread dedicated to financials (stocks, investor reports). How can you expect people to post intelligently if they lack education on a subject. If you're not going to make one I've been very tempted to make one myself.

  • 0
Dgc1808 (on 09 February 2012)

Huh... I'm guessing it's an inefficient operation in that company. Seems like very low profit for that much revenue...

  • 0
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