Activision Announces Positive Financial Results; Destiny and Hearthstone Reach 50 Million Users Combined

May 6, 2015

Activision just released its financial results for the first quarter of 2015, and they are better than expected, with a net revenue of 1.278 billion dollars and a net income of 394 million dollars.

Below you can see the detailed information about revenue split by platform generation, region and distribution channel, with next generation consoles taking the lion’s share and improve by quite a lot year over year, followed by old generation consoles (that decrease considerably), online and PC.

North America is still the biggest region for Activision, and retail remains the most important distribution channel, even if digital sales have increased considerably.


Below you can see a few highlights included in the press release. Notable is the 50 million number of registered users for Destiny and Hearthstone combined, which indicates about 20 million for Destiny, since Heartstone just reached 30 million users.

  • Activision Publishing’s Destiny and Blizzard Entertainment’s Hearthstone®: Heroes of Warcraft™ combined now have more than 50 million registered players and nearly $1 billion in non‐GAAP revenues life‐to‐date.
  • Activision Publishing had the biggest Q1 online player community in its history, up a double digit percentage year over year.  Activision Publishing also had 2 of the top 5 videogame franchises in North America and Europe year‐to‐date and continues to have 3 of the top 5 next generation games life‐to‐date – with Call of Duty: Advanced Warfare remaining the No. 1 title, as it has since its launch six months ago.   Including toys, Skylanders was also the No. 1 console franchise and title globally in Q1, outsold the No. 1 action figure line globally, and was the No. 1 kids console franchise and title globally.
  •  Activision Publishing’s Call of Duty franchise Q1 sales increased by a double‐digit percentage year‐over‐year due to the strong sell‐through of Call of Duty: Advanced Warfare and growing online revenues per user across the franchise.   There has been early success of the new micro‐ transaction offerings which have helped drive increased engagement and monetization.
  • On March 29, 2015, the company held its third annual Call of Duty® Championship, presented by Xbox, the biggest eSports first‐person action tournament of the year where 32 professional teams competed for $1 million.
  • In January, Activision Publishing’s Call of Duty Online entered open beta in China, in partnership with Tencent.  The open beta marks an historic first for the Call of Duty franchise as it expands into the world’s largest gaming market.
  • Activision Publishing’s Destiny continues to have strong engagement, with active players playing about 3 hours per day, along with strong digital sales and expansion attach rates.  Additionally, Destiny was awarded Game of the Year by the British Academy of Film and Television Arts, a prestigious addition to the 31 Game of the Year awards that Destiny has been honored with to date.
  • Blizzard Entertainment had the largest Q1 online player community in its history, up a double digit percentage year over year despite no major launches in the quarter. As expected and consistent with our experience following prior expansions, we saw a decline in the World of Warcraft subscriber number.  Subscribers ended the quarter at 7.1 million.  World of Warcraft’s revenue performance at constant FX has been more stable, driven by continued strong uptake on value added services, and price increases in select regions, which partially offset subscriber declines, particularly in the East. World of Warcraft remains the No. 1 subscription‐based MMORPG in the world.
  • Blizzard Entertainment’s Heroes of the Storm™, which has had over 11 million beta sign‐ups, entered closed beta in January.  The Founder’s Pack, released in the quarter for $39.99, granted immediate access to the beta, along with a selection of heroes, skins and more
  • Blizzard Entertainment’s Hearthstone: Heroes of Warcraft had steady engagement and revenues quarter over quarter, despite no new content releases this quarter. This was driven by sustained pickup of the Goblins vs Gnomes™ expansion content, which was released in the previous quarter.
  • On March 31, 2015, Blizzard Entertainment kicked off closed beta testing for StarCraft® II: Legacy of the Void™, the third installment of the company’s real‐time strategy sequel.  Legacy of the Void will be a standalone product that doesn’t require any prior releases, so it will be easier than ever for players to get into the game and experience all of the latest content.

The company also released its outlook for the full year 2015, shown in the slide below. The company predicts to earn 4.25 billion dollar this year, with an operating margin of 27%.

Giuseppe Nelva

Hailing from sunny (not as much as people think) Italy and long standing gamer since the age of Mattel Intellivision and Sinclair ZX Spectrum. Definitely a multi-platform gamer, he still holds the old dear PC nearest to his heart, while not disregarding any console on the market. RPGs (of any nationality) and MMORPGs are his daily bread, but he enjoys almost every other genre, prominently racing simulators, action and sandbox games. He is also one of the few surviving fans of the flight simulator genre on Earth.

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