Use our mobile site at: m.ITbriefing.net    Follow ITbriefing.net: Follow ITbriefing on Twitter   Follow ITbriefing via Facebook   Follow ITbriefing via RSS 
Activision Blizzard Announces Fourth-Quarter and 2017 Financial Results


 Tags:   News: Games                This was published: 8 Feb 2018 - 09:26 pm         Print article: Printer friendly page
          

Activision Blizzard Announces Fourth-Quarter and 2017 Financial Results - on DefenceBriefing.net

Activision Blizzard, Inc. (NASDAQ-NMS: ATVI) today announced fourth-quarter and 2017 results.



“This was a record quarter to cap off a record year for Activision Blizzard,” said Bobby Kotick, Chief Executive Officer of Activision Blizzard. “In 2017, our community reached new milestones for engagement, our business delivered record revenues and cash flows, and we made important progress in building future growth opportunities such as the Overwatch League™. We couldn't be more excited for the opportunities ahead in 2018 to continue serving our players and fans.”

Financial Metrics:

  Fourth Quarter     Calendar Year
    Prior        
(in millions, except EPS)     2017   Outlook*     2016       2017       2016  
GAAP Net Revenues $ 2,043   $ 1,700   $ 2,014 $ 7,017 $ 6,608
Impact of GAAP deferralsA $ 597 $ 635 $ 438 $ 139 $ (9 )
 
GAAP EPS $ (0.77)** $ 0.10 $ 0.33 $ 0.36** $ 1.28
Non-GAAP EPS $ 0.49 $ 0.36 $ 0.65 $ 2.21 $ 2.18
Impact of GAAP deferralsA   $ 0.45     $ 0.46     $ 0.27     $ 0.07     $ 0.02  

* Prior outlook was provided by the company on November 2, 2017 in its earnings release.
** GAAP EPS includes incremental expense ($1.03 for the fourth quarter and $1.04 for the full year 2017) due to the impact of significant discrete tax-related items, including amounts related to changes in tax laws (including a reasonable estimate of the impact of the Tax Cuts and Jobs Act enacted in December 2017, as provided for in accordance with Securities and Exchange Commission guidance), and amounts related to the potential or final resolution of tax positions, and other unusual or unique tax-related items and activities. Activision Blizzard will provide additional information relating to these items in our Form 10-K for the year ending December 31, 2017.

For the year ended December 31, 2017, Activision Blizzard’s net revenues presented in accordance with GAAP were a record $7.02 billion, as compared with $6.61 billion for 2016. GAAP net revenues from digital channels were a record $5.48 billion. GAAP operating margin was 19%. For the year ended December 31, 2017, Activision Blizzard recognized approximately $1.04 per share in incremental GAAP expense due to the impact of significant discrete tax-related items, primarily related to the impact of the Tax Cuts and Jobs Act enacted in December 2017. GAAP earnings per diluted share were $0.36, which would have been a record $1.39 when adjusted to exclude significant discrete tax-related items, as compared with $1.28 for 2016. On a non-GAAP basis, Activision Blizzard’s operating margin was 33% and earnings per diluted share were a record $2.21, as compared with $2.18 for 2016.

For the quarter ended December 31, 2017, Activision Blizzard’s net revenues presented in accordance with GAAP were an all-quarter record $2.04 billion, as compared with $2.01 billion for the fourth quarter of 2016. GAAP net revenues from digital channels were $1.43 billion. GAAP operating margin was 11%. For the quarter ended December 31, 2017, Activision Blizzard recognized approximately $1.03 per share in incremental GAAP expense due to the impact of significant discrete tax-related items, primarily related to the impact of the Tax Cuts and Jobs Act enacted in December 2017. GAAP loss per share was $0.77, or earnings per diluted share of $0.27 when adjusted to exclude significant discrete tax-related items, as compared with earnings per diluted share of $0.33 for the fourth quarter of 2016. On a non-GAAP basis, Activision Blizzard’s operating margin was 25% and earnings per diluted share were $0.49, as compared with $0.65 for the fourth quarter of 2016.

Activision Blizzard generated a record $2.21 billion in operating cash flow for the year ended December 31, 2017, as compared to $2.16 billion for 2016. For the quarter, operating cash flows were $1.16 billion.

Please refer to the tables at the back of this press release for a reconciliation of the company’s GAAP and non-GAAP results.

Operating Metric:

Net bookings is an operating metric that is defined as the net amount of products and services sold digitally or sold-in physically in the period, and includes license fees, merchandise, and publisher incentives, among others.

For the year ended December 31, 2017, Activision Blizzard’s net bookingsB were a record $7.16 billion, as compared with $6.60 billion for 2016. Net bookingsB from digital channels were a record $5.43 billion, as compared with $5.22 billion for 2016.

For the quarter ended December 31, 2017, Activision Blizzard’s net bookingsB were an all-quarter record $2.64 billion, as compared with $2.45 billion for the fourth quarter of 2016. Net bookingsB from digital channels were an all-quarter record $1.62 billion, as compared with $1.52 billion for the fourth quarter of 2016.

Selected Business Highlights:

Activision Blizzard’s success in 2017 shows the enduring nature of our franchises, and that our communities value innovation and new experiences from our inspired teams.

Audience Reach

  • Activision Blizzard had 385 million Monthly Active Users (MAUs)C in the quarter, up from 384 million last quarter.
  • King had 290 million MAUsC, down 1% quarter-over-quarter, while time spent per player reached a record of 37 minutes per day. MAUsC for the Candy CrushTM franchise grew slightly quarter-over-quarter while also driving increased time spent per player.
  • Activision had 55 million MAUsC for the quarter, up 12% quarter-over-quarter and matching its prior quarterly record, driven by the successful launches of Call of Duty®: WWII and Destiny 2. For the year, Activision had the top two-grossing console game releases in North America and two of the top-five grossing console game releases worldwide.1
  • Activision’s Call of Duty: WWII was the top-grossing console game of the year globally1, with the franchise’s biggest launch quarter sell-through on current-generation consoles. The game set a Sony PlayStation milestone as the biggest day 1 digital release ever.2 Call of Duty has been the number one franchise globally for 8 of the last 9 years.1
  • Activision and Bungie’s Destiny 2 was the second-highest-grossing console game in North America for the year1, had the largest PC launch in Activision history based on units, and had a higher attach rate on its first expansion than Destiny 1.
  • Activision’s Crash BandicootTM N. Sane Trilogy was the number one-selling remastered collection in PS4 history.1
  • Blizzard had 40 million MAUsC for the quarter. While down sequentially, this is the 6th quarter in a row with 40 million or more MAUsC, primarily driven by Overwatch® and Hearthstone®.

Deep Engagement

  • For the second quarter in a row, players spent over 50 minutes per day in Activision, Blizzard, and King games, in line with some of the most engaging online connected platforms in the world.
  • The inaugural season of the Overwatch League started on January 10 with 12 world-class team owners from across the globe, multiple league and team-level sponsors, a premium viewing experience and a robust distribution strategy. In its first week, the Overwatch League reached more than 10 million unique viewers across the world with an average audience of more than 280,000 on a per minute basis.
  • The Call of Duty World League, which kicked off in December, has sold out each of its World League Global Open events. The launch event in Dallas had more than double the viewership hours of last year’s launch event.

Player Investment

  • Activision Blizzard delivered a fourth-quarter record of over $1 billion of in-game net bookingsB, and an annual record of over $4 billion of in-game net bookingsB.
  • King grew segment revenues and operating income year-over-year, delivered record mobile net bookingsB in 2017, and increased its average net bookingsB per paying user by a double-digit percentage year-over-year. This quarter, King had two of the top-10 highest-grossing titles in the U.S. mobile app stores for the seventeenth quarter in a row, with Candy Crush Saga and Candy Crush Soda SagaTM at #1 and #2, respectively.3 The Candy Crush franchise grew consumer spend sequentially for the fourth quarter in a row.
  • Activision delivered record segment operating income of over $1 billion with record operating margin of 38%. Activision offered compelling downloadable content offerings, including Zombies Chronicles for Call of Duty: Black Ops III, Destiny 2’s expansion pass, Call of Duty: WWII’s season pass, and additional live features, services and content.
  • Blizzard delivered record segment revenues and operating income for a year with no major game release, as they continued to deliver continuous content across franchises including Overwatch, Hearthstone, and World of Warcraft®.

Company Outlook:

           

(in millions, except EPS)

     

GAAP Outlook

     

Non-GAAP Outlook

     

Impact of GAAP deferralsA

CY 2018

Net Revenues $ 7,350 $ 7,350 $ 100
EPS $ 1.78 $ 2.45 $ 0.05
Fully Diluted Shares 776 776

Q1 2018

Net Revenues $ 1,820 $ 1,820 $ (540 )
EPS $ 0.47 $ 0.65 $ (0.34 )
Fully Diluted Shares       771       771        

Net bookingsB (operating metric) is expected to be $7.45 billion for 2018 and $1.28 billion for the first quarter of 2018.

Currency Assumptions for 2018 Outlook:

  • $1.20 USD/Euro for current outlook (vs. average of $1.12 for 2017 and $1.11 for 2016); and
  • $1.37 USD/British Pound Sterling for current outlook (vs. average of $1.30 for 2017 and $1.36 for 2016).
  • Note: Our financial guidance includes the forecasted impact of our FX cash flow hedging program.

Capital Allocation:

The Board of Directors declared a cash dividend of $0.34 per common share, payable on May 9, 2018 to shareholders of record at the close of business on March 30, 2018, which represents a 13% increase from 2017. Additionally, the Board of Directors authorized over $1 billion of further debt paydown during 2018.

Conference Call:

Today at 4:30 p.m. EST, Activision Blizzard’s management will host a conference call and Webcast to discuss the company’s results for the quarter ended December 31, 2017 and management’s outlook for the remainder of the calendar year. The company welcomes all members of the financial and media communities and other interested parties to visit the “Investor Relations” area of www.activisionblizzard.com to listen to the conference call via live Webcast or to listen to the call live by dialing into 888-515-2235 in the U.S. with passcode 1423198.

Article source - Business Wire, all right reserved. Copyright 2018
Trademarks, logos, pictures and other items may be copyright of firms mentioned in this article.




Further information:
Organisation name:    Activision Blizzard, Inc.
Organisation stock symbol: NASDAQ:ATVI


Latest stock price data for NASDAQ:ATVI

 


Other related articles, tagged News: Games

· Mitsubishi Electric’s New Integrated-automation Factory to Produce Vacuum Interrupters and Vacuum Circuit Breakers   (02/20/18)
· Global Industrial Remote Terminal Unit (RTU) Market 2017-2021 With Emerson, Honeywell, Schneider Electric, Siemens and Yokogawa Dominating - ResearchAndMarkets.com   (02/20/18)
· Electrical and Electronics Manufacturing Market Global Briefing 2018 - Samsung Electronics Dominated the Market in 2016 - APAC Dominated in 2017 - ResearchAndMarkets.com   (02/20/18)
· CSG to Exhibit at Mobile World Congress 2018   (02/19/18)
· Georgia Telecoms Market Report 2018 - Subscriber & Penetration Rate Forecasts for Mobile, Fixed Landline and Broadband - ResearchAndMarkets.com   (02/19/18)
· St. Lucia Telecoms Market Report 2018: Analysis and Forecasts (2005-2025) - Trends, Drivers and Challenges - ResearchAndMarkets.com   (02/19/18)
· Ghana Telecoms Market Report 2018 - Subscriber and Penetration Rate Forecasts for Mobile, Fixed Landline and Broadband - ResearchAndMarkets.com   (02/19/18)
· Xiaomi Total Smartphone Shipments in China and Globally 2015-2017 - Forecasts to 2021 - ResearchAndMarkets.com   (02/19/18)
· Gibraltar Telecoms Market Report 2018: Analysis and Forecasts (2005-2025) - Trends, Drivers and Challenges - ResearchAndMarkets.com   (02/19/18)
· Iceland Telecoms Market Report 2018 - Growth, Demand, Pricing, Competition, Infrastructure and Policies - ResearchAndMarkets.com   (02/19/18)

>>>More articles  >>>

Latest tech videos:



· Alabama Virtual Academy at Eufaula City Schools Now Enrolling for 2018-2019 School Year (2018-02-19 15:26)
Alabama Virtual Academy at Eufaula City Schools Now Enrolling for 2018-2019 School Year - on DefenceBriefing.net

Alabama Virtual Academy at Eufaula City Schools (ALVA-ECS) welcomes families to apply for enrollment for the 2018-2019 school year. An online public school authorized by the Alabama State Department of Education and the Eufaula City Schools, ALVA-ECS is available tuition-free to students in grades K-12 who reside anywhere in the state.


· WWE Survivor Series® Tickets Available Friday, March 16 (2018-02-19 15:26)
WWE Survivor Series® Tickets Available Friday, March 16 - on DefenceBriefing.net

WWE® (NYSE: WWE) today announced that tickets to Survivor Series will be available on Friday, March 16 starting at 1 p.m. ET/10 a.m. PT. Survivor Series will take place Sunday, November 18, 2018 at STAPLES Center in Los Angeles and will be streamed live around the world on WWE Network.


· Red Hat Receives Overall "Positive” Rating in Gartner"s 2018 Vendor Rating (2018-02-19 15:26)
Red Hat Receives Overall “Positive” Rating in Gartner’s 2018 Vendor Rating - on DefenceBriefing.net

Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced Gartner, Inc., a leading provider of research and analysis on the global information technology industry, has given the company an overall “Positive” rating in its 2018 Vendor Rating report for the fourth consecutive time.


· Harris Corporation EWeek Celebration Inspires Wonder in Engineering (2018-02-19 15:26)
Harris Corporation EWeek Celebration Inspires Wonder in Engineering - on DefenceBriefing.net

Harris Corporation (NYSE: HRS) employees will design, build and problem-solve during a series of events marking National Engineers Week, or EWeek, at Harris locations around the United States and the world.


· Syncfusion Launches Annual Succinctly Readers Award (2018-02-19 15:26)
Syncfusion Launches Annual Succinctly Readers Award - on DefenceBriefing.net

Syncfusion, Inc., the developer solutions company of choice, is pleased to announce the winners of the 2017 Succinctly Readers Award, recognizing readers’ favorite titles published in 2017 as part of the Succinctly series—a library of free, technical publications.


· Indix Announces Broad Availability of Its AI-Based Product Prediction Services (2018-02-19 14:26)
Indix Announces Broad Availability of Its AI-Based Product Prediction Services - on DefenceBriefing.net

Indix, the world’s leading product AI company, announced the broad availability of its AI-based prediction services for product categorization, brand identification, standardized attribute extraction and product clustering. With Indix’s prediction services, companies will now have the power to process millions of product records in minutes, using AI, without any humans in the loop.


· KORE Selects LogiSense to Enhance Its Channel Partnership Programs with Integrated Usage-Based Rating and Billing Capabilities (2018-02-19 14:26)

LogiSense, a global usage-based rating and billing solutions provider announced today that KORE, the largest independent provider of managed network and layered application enablement services in the Internet of Things market, has selected LogiSense to help enhance its channel partnership program by introducing bill-on-behalf-of capabilities.


· Prometric® Introduces New Apps for Testing and Assessment at ATP Industry Event in February 2018 (2018-02-19 14:26)
Prometric® Introduces New Apps for Testing and Assessment at ATP Industry Event in February 2018 - on DefenceBriefing.net

Prometric®, a global leader in test development and delivery, will unveil its latest innovations, ProScheduler™ and ProProctor, at the Association of Test Publishers (ATP) Innovations in Testing 2018 annual conference to be held in San Antonio, Texas from February 18th to February 21st.


· Renesas Electronics Introduces Low-Cost Target Boards to Support Growing RX 32-bit MCU Family (2018-02-19 13:26)
Renesas Electronics Introduces Low-Cost Target Boards to Support Growing RX 32-bit MCU Family - on DefenceBriefing.net

Renesas Electronics Corporation (TSE:6723), a premier supplier of advanced semiconductor solutions, today announced three new Target Boards for the RX65N, RX130 and RX231 Microcontroller (MCU) Groups, each designed to help engineers jump start their home appliance, building and industrial automation designs. Priced below $30 USD, the Target Boards lower the price threshold for engagement, allowing more system developers to enjoy the benefits of Renesas’ broad-based 32-bit RX MCU Family.


· Trusted Global Leaders in Dental 3D Printing and Software Join Forces to Ease Adoption of Quality Digital Dentures (2018-02-19 13:26)
Trusted Global Leaders in Dental 3D Printing and Software Join Forces to Ease Adoption of Quality Digital Dentures - on DefenceBriefing.net

EnvisionTEC, the global leader in dental 3D printers and materials, and AvaDent Digital Dental Solutions, the global leader in digital dentures, today announced a new partnership.


· Tampere Attracts AV Productions with a New Incentive (2018-02-19 13:06)
Tampere Attracts AV Productions with a New Incentive - on DefenceBriefing.net

One of the City of Tampere’s strategic goals is to be an international meeting place for creativity and innovation. The development of the experience economy is an essential focus of the city’s business policy. The incentive system is being used to attract more local, national and international productions to the Tampere region. The goal is to promote the development of the industry and to increase the number of jobs and the turnover of commercial productions in Tampere.


· BlueShore Financial Reports Record 2017 Financial Results (2018-02-19 12:46)
BlueShore Financial Reports Record 2017 Financial Results - on DefenceBriefing.net

BlueShore Financial reported outstanding financial results for 2017 with assets under administration (AUA) soaring to $5.2 billion.


· Communitech Forms Indo-Canada Innovation Bridge with India"s T-Hub (2018-02-19 12:46)
Communitech Forms Indo-Canada Innovation Bridge with India’s T-Hub - on DefenceBriefing.net

Communitech has signed a memorandum of understanding with T-Hub of India today, announcing the intent to partner in support of global commercialization of each other’s technology companies.


· Tempo Grows Revenue by 38% in 2017 to $17.9 Million (2018-02-19 11:26)
Tempo Grows Revenue by 38% in 2017 to $17.9 Million - on DefenceBriefing.net

Tempo, creator of efficiency-enhancing project management software solutions for Atlassian’s Jira platform, announced strong results for its 2017 fiscal year ending December 31, 2017.


· Accenture Completes Acquisition of Mackevision (2018-02-19 09:26)

Accenture (NYSE: ACN) has completed the acquisition of Germany-based Mackevision, a leading global producer of 3D-enabled and immersive product content.


· GSMA Announces Winners of Inaugural Mobile World Scholar Challenge (2018-02-19 09:26)
GSMA Announces Winners of Inaugural Mobile World Scholar Challenge - on DefenceBriefing.net

The GSMA today announced the winners of its inaugural Mobile World Scholar Challenge. New for Mobile World Congress 2018, the Mobile World Scholar Challenge is a video-based competition designed to discover and highlight ground-breaking new technologies developed at universities around the globe.




© Website copyright Incandore Limited 2012. All rights reserved. All content copyrights / trademarks remain the property of their respective owners.