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Activision break own record thanks to Guitar Hero success

by Steven Williamson on 6 November 2007, 10:27

Tags: Guitar Hero III: Legends of Rock, Activision (NASDAQ:ATVI), Xbox 360, PS3, Wii

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Press release

Net revenues for the second quarter were a record $317.7 million, a 69% increase, as compared to net revenues of $188.2 million reported for the same quarter last fiscal year. Net income for the second fiscal quarter was $0.7 million, or break-even earnings per share, as compared to a net loss of $24.3 million, or a loss per share of $0.09 reported for the second quarter of last fiscal year. Excluding the impact of expenses related to equity-based compensation, the company had net income of $4.9 million and earnings per diluted share of $0.02 for the second quarter. This compares to a net loss of $21.3 million and a loss per share of $0.08, excluding the impact of expenses related to equity-based compensation for the second quarter of last fiscal year.

Net revenues for the six-month period ended September 30, 2007 were $813.2 million, as compared to net revenues of $376.2 million reported for the six-month period of last fiscal year. Net income for the first six months was $28.5 million, or earnings per diluted share of $0.09, as compared with a net loss of $42.6 million, or a loss per share of $0.15, reported for the same period last fiscal year. Excluding the impact of expenses related to equity-based compensation, the company had net income of $37.7 million and earnings per diluted share of $0.12 for the first six months of fiscal 2008. This compares to a net loss of $36.1 million and a loss per share of $0.13, excluding the impact of expenses related to equity-based compensation for the six-month period of last fiscal year.

Robert Kotick, Chairman and CEO of Activision, stated, "Our second quarter net revenues were the highest in our company's history and we ended the quarter with $962 million in cash and short-term investments. We significantly strengthened our development capabilities through our acquisition of Bizarre Creations, a proven top-tier developer of racing games which will facilitate our entry into this important segment."

Kotick continued, "During Q3, we shipped more units of our internally developed, wholly owned franchise, Guitar Hero IIIĀ®: Legends of Rock, than any other game in Activision's history. Within the first seven days, consumer sell through was more than $100 million in North America alone - our largest product launch ever. Our third-quarter slate is expected to deliver our strongest quarterly results to date, with forecasted net revenues in excess of $1 billion. The eagerly anticipated Call of Duty 4: Modern Warfare will launch tomorrow, and all of our holiday titles in North America will be in retail distribution by mid-week. We are continuing to leverage our strong portfolio of franchises across key geographies and gaming platforms. As a result of our strong performance in the first six months of the fiscal year, and our solid third quarter release slate, we are raising our fiscal year 2008 net revenues and earnings outlook."


HEXUS Forums :: 4 Comments

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Something amazing considering EA's news of the huge loss they made last quarter.

TiG
Guitar Hero 3 is just the same as 2 but with more songs.

Not that it's a bad thing by any means, it's still a Must Buy.
Sierro
Guitar Hero 3 is just the same as 2 but with more songs.

Not that it's a bad thing by any means, it's still a Must Buy.

Nice review! Nothing else needs to be said. :)
Ahh… highlight the fact the songs all sound better than GH2 and they've not got any nasty covers like “killing in the name….” that made me cringe it was that woefully bad.