Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Summits
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Issues 2012
Candidates 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Mohamed El-Erian
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Geraldine Fabrikant
Jack & Suzy Welch
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
U.S. extends travel warning to Mexico over violence
09 Feb 2012
UPDATE 1-Pentagon attacks obesity with new food choices
09 Feb 2012
Greece deal fails to convince, EU demands more
|
09 Feb 2012
Gorbachev: Russia faces turmoil as Putin won't change
09 Feb 2012
U.S. banks agree to $25 billion in homeowner help
|
09 Feb 2012
Discussed
476
FBI warns of threat from anti-government extremists
196
Job growth seen slowing after holiday boost
160
House Speaker Boehner vows to stop Obama contraceptive rule
Watched
Asian girl band kicks open door to U.S.
Thu, Feb 9 2012
Huge baby shocks parents
Tue, Feb 7 2012
Has Iceland’s Nessie shown itself?
Wed, Feb 8 2012
Activision slows "World of Warcraft" declines
Tweet
Share this
Email
Print
Related News
Activision slows "World of Warcraft" declines
Thu, Feb 9 2012
Groupon loss and weak sales clobber shares
Wed, Feb 8 2012
Cisco Q3 revenue outlook strong after Q2 beat
Wed, Feb 8 2012
Moody's misses estimates with lower profit
Wed, Feb 8 2012
Time Warner beats forecasts, shares up
Wed, Feb 8 2012
Analysis & Opinion
Curt Schilling’s video game finally gets on base
Two cheers for Spanish banking reform
Related Topics
Tech »
Media »
Visitors play ''World of Warcraft'' at an exhibition stand during the Gamescom 2011 fair in Cologne August 17, 2011.
Credit: Reuters/Ina Fassbender
By Liana B. Baker
Thu Feb 9, 2012 7:00pm EST
(Reuters) - Activision Blizzard Inc's quarterly sales beat Wall Street expectations on Thursday as the video game publisher lost fewer "World of Warcraft" subscribers than it did a quarter ago.
Investors are closely watching subscriber numbers for "World of Warcraft" because the franchise is the company's most profitable business and generates a steady stream of monthly revenue from its millions of users.
The company ended the quarter with 10.2 million "World of Warcraft" subscribers, which is down from 10.3 million from the previous quarter.7
The net loss of 100,000 subscribers is smaller than the 700,000 subscribers it lost during the third quarter.
The industry is struggling to pull out of a protracted slump. Video game sales were down 34 percent year over year in January, according to data released by industry research house NPD on Thursday.
Chief Executive Bobby Kotick told Reuters in an interview that Wall Street has over-reacted to declines in that business. He said the content update of the game in late November helped keep players on board.
"When we introduced the content patch we thought the numbers would stabilize and they have," he said in an interview.
But executives on the conference call with analysts failed to address the threat of Electronic Arts Inc's new video game, "Star Wars: The Old Republic," which is facing off directly against the "World of Warcraft" the online subscription game category.
Analysts are convinced that EA's game, which has attracted 1.7 million subscribers so far, is chipping away at Activision's user base for "Warcraft."
"Clearly it'll have an impact on Activision and they didn't address that. It's hard to believe that EA found an entirely new audience of players for its game that is not from 'Warcraft' players," said Mike Hickey, an analyst for National Alliance Capital Markets.
The company said it's Blizzard division, which makes World of Warcraft and other high-margin Internet games, will release two titles this year after the first quarter, including "Diablo 3," but executives declined to give specific release dates.
These new games will drive earnings of the U.S.'s largest video game publisher this year. It now expects $4.5 billion in annual revenue in 2012 and earnings per share of 94 cents. This is slightly below the $4.55 billion in revenue analysts were expecting on average in 2012, according to Thomson-Reuters I/B/E/S.
For the first quarter, the company expects EPS of 3 cents per share on revenue of $525 million, which falls short of analysts' expectations of EPS of 14 cents per share on revenue of $771.1 million.
Activision's fourth-quarter sales for the three months ended December 30 fell 6 percent to $2.4 billion. Analysts were expecting sales of $2.2 billion, according to Thomson Reuters I/B/E/S.
Adjusted for the deferral of revenue from digital content, Activision posted a profit of $725 million, or 62 cents per share, which beat Wall Street estimates of 56 cents a share.
One of the surprise hits for Activision this year was its kids game "Skylanders," which incorporated plastic toys with a console video game. It sold more than 20 million toys so far and CEO of Activision Publishing Eric Hirshberg told analysts on the conference call that the franchise was on track to being "a $1 billion business."
In recent quarters, investors have been concerned the company is not diversified enough with its titles. Having a new mainstream hit will be viewed positively by Wall Street, said Hickey, the National Alliance analyst.
The company also announced it would buy back $1 billion of its stock starting in April and that it will increase its dividend, which it will pay out on May 16, by 9 percent.
The company's shares rose 9 cents, or 0.7 percent, in after-market trading to $12.75 per share.
(Reporting By Liana B. Baker; editing by Phil Berlowitz and Andre Grenon)
Tech
Media
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Advertise With Us
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.