Guitar Hero Leads Activision’s Record Q2
Activision has beat its fiscal guidance on the success of Guitar Hero, Transformers and Enemy Territory: Quake Wars, as expectations for the holiday quarter exceed $1 billion.
The Santa Monica, Calif.-based publisher reported net revenues of $317.7 million for the second fiscal quarter ended September 30, a 69 percent year-on-year increase.
Previous guidance was for $250 million in net sales.
Net income was $700,000, or break-even earnings per share, versus guidance of a loss of 4 cents per share. The comparable quarter a year ago saw a net loss of 9 cents per share.
"Our second quarter net revenues were the highest in our company’s history and we ended the quarter with $962 million in cash and short-term investments. We significantly strengthened our development capabilities through our acquisition of Bizarre Creations, a proven top-tier developer of racing games which will facilitate our entry into this important segment,” said CEO Robert Kotick in a statement.
Activision also said that its Q3 smash Guitar Hero III: Legends of Rock had shipped more than any other game in Activision history.
“Within the first seven days, consumer sell through was more than $100 million in North America alone — our largest product launch ever,” Kotick added. “Our third-quarter slate is expected to deliver our strongest quarterly results to date, with forecasted net revenues in excess of $1 billion.”
Activision also raised its fiscal year 2008 guidance to $2.07 billion in net revenues, up from $1.87 billion. It would be the first $2 billion year for the publisher.