Activision Reports Q2 Earnings
It's been a day of numbers. Ubisoft announced their semester statistics earlier today, and now its Activision's turn to reveal their revenue for the second fiscal quarter. Total revenue for said quarter was $188.2 million, a 15% decline from the $222.5 million the company pulled in during the same quarter last year.
But that 15% drop isn't quite as bad as it sounds. The $188.2 million was actually far above the $130 million Activision had originally estimated, and actually places them solidly in third place in the publisher rankings behind EA. Activision didn't go into details regarding which specific titles had done better than expected, but did say that "strong performance of the company's product portfolio, improving market conditions and the strength of the company's distribution and affiliate businesses" prompted the revised figures.
Because of this, the company has altered its financial year (which ends June 30, 2007) predictions; they now expect a total pull of $1.15 billion, a significant increase over the earlier $1.08 billion estimate. On the other hand, a group of analysts surveyed by the Associated Press were a little more conservative, estimating a 12-month revenue of just over $1.09 billion for the company.
This news may have caused the hefty stock rise during after-hours trading. Although Activision's stock ended they day down $0.56 (3.78%), it rebounded and then some after the market closed. As of a few hours ago, the company's share price had risen an encouraging $1.10 (7.71%) to $15.37. In short, it looks like more good news for video game companies.
10/25/2006 Ben Dutka