Activision financials: Activision’s profits rocket on back of Guitar Hero and CoD4

By Patrick Garratt, Thursday, 7 February 2008 22:16 GMT


Activision’s announced a heavy profit increase for its third quarter, rising from $142.8 million in the same period the previous year to $272.2 million. That’s a 90 cent per share yield, excluding charges.

The company’s revenue ballooned in the three months ending December 31, up 80 percent to $1.48 billion from $842.26 million a year ago.

Huge sales of Call of Duty 4 and Guitar Hero III caused the surge in revenues in the build up to Christmas. Call of Duty 4 was the biggest selling game last year, moving over 7 million units.

The figures are well beyond expectation. Analysts had predicted revenue of $1.38 billion and earnings of 81 cents a share, excluding charges. For the full fiscal year, Activision forecast revenue of $2.65 billion this afternoon, and earnings of 97 cents per share. This is an increase in guidance from $2.45 billion.

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