Activision Blizzard Inc (NASDAQ: ATVI), the video game publisher recently released its Q2 earnings and according to MarketWatch:
The Santa Monica, Calif.-based company reported a second-quarter profit of $335 million, or 29 cents a share, compared with a profit of $219 million, or 17 cents a share, for the year-earlier period.
Revenue was $1.15 billion, up from $967 million. Adjusted revenue was $699 million, while adjusted profit was 10 cents a share.
The Wall Street Journal notes the importance of digital (downloadable) sales to the company’s revenue growth:
The Santa Monica, Calif., company attributed the boost in second-quarter profit to record digital sales, a category that includes subscription revenue from its lucrative online game “World of Warcraft” and downloadable content that expands the company’s best-selling “Call of Duty: Black Ops” war game.
Digital sales represented 37% of Activison’s overall revenue for the quarter, up from 34% a year earlier.
Despite the company’s strengths in digital sales, it is no slouch in retail either. The company follows Apple’s (NASDAQ: AAPL) successful strategy of using the retail experience to boost customer loyalty:
[CEO] Kotick said Activision still relies heavily on the “theater of retail,” including midnight store openings for the hottest games and kiosks that introduce players to new titles. “Those things are so valuable in evangelizing to an audience,” he said. “You can’t do that in an online environment.”
Covestor models that held ATVI as of 8/3 include:
Sources:
“Activision net jumps 53% on higher sales” MarketWatch. https://www.marketwatch.com/story/activision-net-jumps-53-on-higher-sales-2011-08-03?siteid=rss&rss=1
“Digital Sales Propel Activision’s Earnings” The Wall Street Journal. http://online.wsj.com/article/SB10001424053111903885604576486621357420198.html?mod=googlenews_wsj
