Macro Tsimmis

intelligently hedged investment

Activision Blizzard (ATVI) update #20—Good 3Q10 results, cautious guidance

Posted by intelledgement on Fri, 05 Nov 10

Our game publishing company, Activision Blizzard (ATVI), announced 3Q10 results yesterday that handily surprised to the upside—profits of 12 cents per share vs. the analysts’ consensus expectations of nine cents per share on a non-GAAP basis. But the guidance the company offered for 4Q10 fell short of expectations: profits of 47 cents per share vs. the consensus expectation of 51 cents per share. CEO Bobby Kotick stated, “Our better-than-expected results are due to our leadership in online entertainment, including strong performance from Activision Publishing’s Call of Duty franchise, and Blizzard Entertainment’s World of Warcraft and StarCraft II: Wings of Liberty.  For the nine months ending September 30, 2010, our digital offerings contributed close to half of our total non-GAAP net revenues and our digital revenues have increased more than 15% over the prior year.”

Third quarter highlights included:

Also, since the $1 billion share buyback announced in February, the company has repurchased approximately 55 million shares of ATVI stock for about $600 million.

In the fourth quarter of 2010, seven new releases are scheduled:

  • Bakugan: Defenders of the Core
  • Call of Duty: Black Ops
  • Cataclysm, the third expansion module for World of Warcraft
  • DJ Hero 2
  • Goldeneye 007 for Nintendo Wii
  • James Bond 007: Bloodstone
  • Tony Hawk: SHRED

Previous ATVI-related posts:

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