Activision the video game publisher has declared its results for the quarter ending December 2011. The company has moved into the green after posting losses over successive quarter. The news was cheered b y the investors as the stocks rallied over the day. Christmas period sales have helped the company post good results. The company was also able to make good sales of its popular game call of duty which recorded the largest sale over the quarter. The only drawback on the results was the reduced subscribers for its online game World of Warcraft the online game.
The company earned $99 million, or 8 cents per share, up from a loss of $233 million, or 20 cents per share, in the same period a year earlier. Revenue slid 1 percent to $1.41 billion from $1.43 billion. Activision earned $725 million, or 63 cents per share, in the latest quarter. That’s up from $655 million, or 53 cents per share, a year earlier. Adjusted revenue fell 5 percent to $2.41 billion from $2.55 billion. The results have exceeded analysts’ expectations on the stock.
The company strategically is in a better position on comparison with its peers. With popular brands such as call of duty and World of Warcraft, the company is able to focus on these games to build its subscriber base. The company has an opportunity to use the subscriber base to develop and launch new games which could enjoy virtual success.
Its shares gained 11 cents to close at $12.66 in regular trading prior to the earnings release, but popped an additional 9 cents to $12.75 after the quarterly financial announcement. We maintain a buy on the company as we believe the company is well positioned to grow over the longer run.