Tencent Technology News November 3, Activision Blizzard today announced the company's third quarter results for the fiscal year ended September 30, 2017. According to the latest financial report, Activision Blizzard third quarter results better than the company's own expectations, net revenue was 16.18 Billion, up 3.2% from 1.568 billion U.S. dollars in the same period of last year and also higher than the company's previous forecast of 1.385 billion U.S. dollars. Net profit was 188 million U.S. dollars, down 5.5% from 199 million U.S. dollars in the same period of last year. Diluted earnings per share of 0.25 US dollars, higher than the company previously estimated 0.09 US dollars.
According to the earnings report, as the "Destiny 2" game was greatly welcomed by the market, the third-quarter performance of Activision Blizzard was better than the company's previous forecast and further raised the company's full-year forecast. Adjusted revenue rose to $ 6.675 billion from the previous estimate of $ 6.4 billion and adjusted adjusted diluted earnings per share to $ 2.08 from the previous estimate of $ 1.94.
Compared with analyst expectations
Activision Blizzard adjusted revenues for the third quarter of 1.9 billion US dollars, higher than the average of analysts forecasting Thomson Reuters survey of 1.74 billion US dollars; however, not in accordance with GAAP diluted earnings per share of 0.47 US dollars , Below the average forecast of $ 0.50 by analysts at FactSet.
Activision Blizzard is expected this year full-year revenue of 6.675 billion US dollars, slightly lower than the analyst estimate of 6.79 billion US dollars; this year is expected to not in accordance with GAAP diluted earnings per share of 2.08 US dollars, lower than industry analysts The average estimated $ 2.14.
Main achievement
Activision Blizzard third-quarter net revenues of 1.618 billion US dollars, 1.568 billion US dollars over the same period last year increased 3.2%, of which net revenue from digital channels was 1.35 billion US dollars, slightly higher than the same period last year of 1.34 billion US dollars. Activision Blizzard third-quarter adjusted revenue of 1.9 billion.
Divided by business unit, third quarter sales of Activision's Blizzard Revenue was US $ 384 million, up from US $ 355 million in the same period of last year. Revenues from subscription, authorization and other businesses were US $ 1.234 billion, much higher than the same period of previous year Of the 1.21 billion U.S. dollars.
Activision Blizzard third quarter total cost and expenditure of 1.361 billion US dollars, higher than 1,272 million the same period last year.Among them, the product cost of 149 million US dollars, higher than the same period last year of 111 million US dollars; game operation and distribution costs of 249 million USD, up from USD 237 million in the same period of last year; product development costs were USD 273 million, up from USD 249 million in the same period of last year; sales and marketing expenses were USD 345 million, up from USD 340 million in the same period of last year; general and administrative expenses At 191 million U.S. dollars, up from 156 million U.S. dollars in the same period of last year.
Activision Blizzard third quarter operating profit of 257 million US dollars, down from 294 million US dollars last year.Active Blizzard third quarter operating profit margin of 16%, not in accordance with GAAP operating profit margin of 30%.
Activision Blizzard third-quarter GAAP net profit of 188 million US dollars, compared with 199 million US dollars the same period last year fell 5.5%; according to GAAP basic earnings per share and diluted profits were 0.25 US dollars last year The same period was 0.27 US dollars and 0.26 US dollars.Even in accordance with GAAP diluted earnings per share of 0.47 US dollars, lower than the same period last year of 0.49 US dollars.
Activision Blizzard third-quarter operating cash flow of 379 million US dollars, 456 million US dollars last year.
Balance sheet
As of September 30, 2017, the total amount of cash and cash equivalents held by Activision Blizzard was US $ 3.576 billion, higher than the value of US $ 3.255 billion as of December 31, 2016; the total assets were approximately US $ 17.718 billion, higher than the figure of up to 2016 17.452 billion U.S. dollars on December 31.
Performance Outlook
Activision Blizzard expects fourth quarter 2017 net revenue will reach 1.7 billion US dollars, diluted earnings per share will reach 0.10 US dollars, excluding in accordance with GAAP diluted earnings per share of 0.36 US dollars.
At the same time, Activision Blizzard also raised its full-year performance forecast, which currently expects net revenue to reach $ 6.675 billion in FY17 and diluted earnings per share of $ 1.22, not in accordance with GAAP Diluted earnings per share of 2.08 US dollars.
Stock performance
On Thursday, the price of Activision Blizzard rose 0.12 U.S. dollars to close at 65.45 U.S. dollars, or 0.18%, on regular trading in the Nasdaq market. As of the posting after the above earnings announcement (as of press time) As Blizzard shares rose another $ 1.10 to 66.55 US dollars, or 1.68% over the past 52 weeks, Activision Blizzard's highest share price of 66.58 US dollars, the lowest share price of 35.12 US dollars.