Entering text into the input field will update the search result below

Activision -8.1% on sales miss, guidance; $750M buyback launched

Feb. 05, 2015 6:34 PM ETActivision Blizzard, Inc. (ATVI) StockBy: Eric Jhonsa, SA News Editor9 Comments
  • Activision (NASDAQ:ATVI) expects Q1 revenue of $640M and EPS of $0.05, well below a consensus of $777.7M and $0.18. Full-year guidance (harder to project for a game developer) is for revenue of $4.4B and EPS of $1.15, below a consensus of $4.71B and $1.15.
  • The board has authorized a new $750M buyback program. It lasts through Feb. 2017, and is good for repurchasing 5% of shares at current levels. Activision also plans to pay off a $250M term loan; the company had $4.3B in debt at the end of Q4, and $4.8B in cash.
  • Thanks to the launch of the Warlords of Draenor expansion pack, the World of Warcraft subscriber base was above 10M at the end of 2014, up from 7.4M at the end of Q3.
  • The expansion pack drove a 98% Y/Y increase in online revenue to $398M. However, console revenue fell 15% to $1.22B, thanks to a 48% drop in prior-gen console revenue to $599M; next-gen console revenue more than doubled to $630M. PC game revenue rose 14% to $127M; mobile/other revenue fell 18% to $269M; and distribution revenue rose 6% to $190M.
  • 31% and 46% of Q4 and full-year revenue respectively came from digital channels, up from 16% and 36% a year earlier. Q4 GAAP R&D spend fell 7% to $184M, and sales/marketing 3% to $247M.
  • Shares have fallen to $20.05 AH.
  • Q4 results, PR

Recommended For You

Related Stocks

SymbolLast Price% Chg
ATVI--
Activision Blizzard, Inc.