Activision Raises Full-Year Guidance as Digital and Online Sales Increase

Activision Blizzard, which is known for its popular Call of Duty and World of Warcraft games, said its second-quarter performance exceeded expectations, driven by record digital sales of its online-enabled franchises.

During the quarter, revenues from digital channels increased 27 percent year over year and accounted for 37 percent of the company’s total net revenues.

Strong digital revenues also contributed to record profits.

Activision reported record earnings per share of 29 cents as compared with 17 cents in the second quarter 2010. Revenues were also up, totaling a new record of $1.1 billion compared to $967 million in the year-ago period.

In a release, Robert Kotick, Activision’s CEO said, “Today, there are more ways than ever for players to access entertainment online and play games which have truly become one of the most compelling forms of entertainment in the world.”

A majority of the company’s digital revenues come from subscriptions, downloadable content and full-digital downloads.

On a non-GAAP basis, the company reported diluted earnings per share of 10 cents on revenues of $699 million. This exceeded the analyst consensus of 5 cents a share on revenues of $599 million.

Activision is also raising its outlook for revenue and earnings per share for calendar year 2011.

It is now expecting non-GAAP revenues of $4.05 billion and 77 cents a share for the year, up from previous expectations of non-GAAP revenues of $3.95 billion and 73 cents a share.

The company’s stock is trading up in after-hours duty by about 3.64 percent or 43 cents to $12.25 a share.


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