Activision Announces Record-Setting Financial Results

| 9 May 2008 12:01

Activision has released its fourth quarter and fiscal 2008 results, showing record-setting growth including a 92 percent year-over-year revenue increase.

Revenues for the fourth quarter rose impressively, up from $312.5 million last year to $602.5 million in 2008. Net income for the final quarter was $44.2 million, compared to a net loss of $14.4 million in the final quarter of the previous fiscal. Net revenues for the full fiscal year ending March 31 reached $2.90 billion, up from $1.51 billion in fiscal year 2007, while net income for the year was $344.9 million, up from $85.8 million dollars over the same period last year. Earnings for the year amounted to $1.10 per diluted share, compared to $0.28 per diluted share in fiscal 2007.

The company's record-setting results were driven by strong performances from Call of Duty 4: Modern Warfare and Guitar Hero III: Legends of Rock, as well as positive responses to licensed games based on Spider-Man 3, Shrek the Third and Transformers. During the year, Activision became the top console and handheld software publisher, growing its market share from 7.2 percent to 17.3 percent, and according to NPD Group figures also set a record for U.S. sell-through in dollars by a single publisher.

"Fiscal 2008 was the best year in our history and Q4 was the largest and most profitable non-holiday quarter, even though we did not release any new titles," said Activision Chairman and CEO Robert Kotick.

"In fiscal 2009, we expect to deliver another year of growth. We remain committed to strengthening our global leadership position by continuing to execute on our growth strategies and cost-optimization initiatives," he continued. "We own or control some of the most successful brands in interactive entertainment, and we will continue to focus our resources on proven properties with broad global appeal. Our solid lineup, which includes new titles based on blockbuster brands such as Call of Duty, Guitar Hero and James Bond, should enable us to continue capitalizing on growth in interactive entertainment consumption worldwide."

Activision's planned releases for the first quarter of fiscal 2009 include Enemy Territory: Quake Wars for the Xbox 360 and PlayStation 3, Guitar Hero: On Tour for the Nintendo DS, Guitar Hero: Aerosmith and Kung Fu Panda.

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