Times are changing in the world of games, and it seems like those clinging to last-gen consoles are being left in the dust.
Activision Blizzard’s Quarterly Report Shows Signs of Strength
Activision Blizzard released it’s first quarterly report of 2013 on May 8, and investors were pleased to see the strong numbers the company is boasting to begin the year.
Net income jumped 18.8% in the quarter, which is very impressive for the three months following the Christmas season, which typically give publishers and retailers the largest boost of the year. Total costs for the period increased 11.8% in comparison. The company is sitting on a lot more cash than the previous quarter as well, with an increase of 40.1% in cash or cash equivalents, likely bolstered by a 24% decline in inventory on hand.
Investors were pleased to see a 17.6% increase in Earnings per Share and a 1 cent increase in dividends per share.
Activision Blizzard stock (ATVI) has jumped significantly in the period, rising from $10.95 on January 2nd to $14.96 on April 30th, an increase of 37%. Analysts have recommend a “Buy” on the stock since June 2011, and they expect further signs of strength in the current quarter.
Activision Publishing took the #1 spot among all video game publishers for the period, gaining revenue momentum from the success of the Skylanders and Call of Duty franchises, the recent iterations of which were the #1 and #2 best selling games of the quarter. The report also notes that Starcraft II: Heart of the Swarm and Diablo III were among the top 10 best sellers for PC.