Earnings Results Coverage - Activision Blizzard

LONDON, August 12, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Activision Blizzard Inc. (NYSE: ATVI) as the company featured in the headlines on Tuesday, August 05, 2014, for reporting better-than-expected second quarter 2014 financial results. The company's GAAP net revenues outperformed the outlook provided by the company by $60 million, while the GAAP earnings per share came in $0.06 above the company's prior outlook. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During the second quarter of 2014, Activision Blizzard Inc.'s digital online channels accounted for 49% of the total GAAP net revenues and 73% of the company's total non-GAAP net revenues, compared with 37% of the total GAAP net revenues and 63% of total non-GAAP net revenues in the year-ago quarter. The North American geographical segment contributed $471 million, or 49% of the total GAAP net revenues, down from $562 million, or 54% of the total GAAP net revenues in the prior year quarter. Europe contributed $395 million to total GAAP net revenues, down from $402 million in the second quarter of 2013. However, Europe's share in total GAAP net revenues improved to 41% from 38% in the year ago quarter. Asia Pacific accounted for $104 million, or 11% of the total GAAP net revenues, compared to $86 million, or 8% of the GAAP net revenues in year-ago quarter. During the quarter, Activision Blizzard paid a dividend of $0.20 per common share, the highest in the history of the company, totaling $147 million. The free research on ATVI can be downloaded as in PDF format at:

http://www.Investor-Edge.com/ATVIFreeReport

The Company stated that till date, its subsidiary Activision Publishing's "Call of Duty: Ghosts" continued to be the #1 best-selling game on the next-generation consoles in North America and Europe combined. The Company further said that as of June 30, 2014, Blizzard Entertainment's (another subsidiary of Activision Blizzard Inc.) "Diablo III: Reaper of Souls" remained the number one PC game in dollars in both North America and Europe and has sold more than 20 million copies worldwide since its release in 2012.

The CEO of Activision Blizzard, Bobby Kotick, stated that the strong digital sales from Blizzard Entertainment's World of Warcraft®, Diablo® III: Reaper of Souls™, and Activision Publishing's Call of Duty®  were the drivers behind the company's better than expected quarterly performance. Mr. Kotick added that based on Q2 2014 results, the company is raising the full-year outlook and expects to deliver record non-GAAP earnings per share for the full year. Mr. Kotick also said that in the upcoming months the company expects to release some of the best games in its history. He stated that Activision Blizzard will continue to embrace new growth opportunities and expand into new geographical areas with the same commitment to excellence that it has demonstrated over the past 23 years. He added that the company will also remain focused on providing compelling and engaging games to its audience as well as superior returns to its shareholders.

During the quarter, the Santa Monica, California-based company's total consolidated GAAP net revenues were $970 million, as compared to $1,050 million in second quarter of 2013. Activision Blizzard's GAAP net income stood at $204 million, or $0.28 per diluted share, as compared with $324 million, or $0.28 per diluted share in Q2 2013. The company recorded non-GAAP net income of $45 million, or $0.06 per diluted share for the second quarter of 2014, as compared with $90 million, or $0.08 per diluted share in second quarter of 2013. Bloomberg analysts expected GAAP net revenue of $607.57 million with GAAP earnings of $162.71 million or $0.20 per share and non-GAAP earnings of $15.97 million or $0.02 per share. Sign up and read the free analyst's notes on ATVI at:

http://www.Investor-Edge.com/ATVI-12082014

Stock Performance 

A day after the earnings release, Activision Blizzard  Inc.'s shares gained 2.64% to close Wednesday's session, August 06, 2014, at $22.95. On Monday, August 11, 2014, Activision Blizzard Inc.'s shares advanced 1.15% further to end the day at $22.80, after vacillating between $22.65 and $23.17. A total of 6.68 million shares were traded, which was above its three months average volume of 6.56 million shares. Activision Blizzard Inc.'s shares have gained 1.60% in the last one month, 9.67% in the previous three months, and 27.87% on YTD basis. The company's shares are trading above their 50-day and 200-day moving averages of $22.17 and $19.58, respectively. The stock traded at a PE ratio of 23.94 and has a Relative Strength Index (RSI) of 49.87. Visit Investor-Edge and access the latest research on ATVI at:

http://www.Investor-Edge.com/ATVIEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, two insiders, namely, Robert A. Kotick, Activision Blizzard's CEO and Brian G. Kelly, Chairman of the Board, have together sold 27,796 shares of Activision Blizzard Inc. worth $623,743 at an average price of $22.44. Mr. Kotick sold 17,924 shares, while Mr. Kell sold 9,872 shares on August 01, 2014. Complimentary in-depth research on ATVI is available at:

http://www.Investor-Edge.com/ATVIInsiderTrading

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