Monday, January 26, 2009

Activision 2008 Annual Report

Activision 2008 Annual Report Highlights.

-16th Consecutive year of Revenue Growth
-Call of Duty 4 was #2 best selling video game by units sold in United States and Europe
-Guitar Hero 3 was #1 in United States and Europe by dollars for video game
-Increased market share in 49 of 50 retailers around the world
-The acquistions of Redoctane and Bizarre creations (developer of Project Gotham Racing for XBOX)
-Continuing to follow three core principles for company
1.Driving Franchise Growth
2.A Strong Internal Studio Model
3.Winning, Where it Matters Most
-Call of Duty and Guitar Hero both over $1 Billion lifetime
-Continues to gain licenses, current ones are:
1. Marvel (Spider Man and X-Men) through 2017
2. Tony Hawk through 2015
3. Dreamworks (Monsters vs. Aliens game in 2009)
4. World Series of Poker
5. James Bond through 2014
6. Mattell
7. Viacom (MTV and Nickeleodeon)
-Significant room to improve in PC and Handheld. 2007 broke down as:
73% Console
8% Handheld
5% PC
-Room to grow on Nintendo Wii (only 5% of net revenue, compared to 49% PS2 and PS3, and 23% XBOX 360 and XBOX)

Activision will be releasing Starcraft and Diablo sequels this year along with Guitar Hero Metallica Edition.

Continue to watch this company.

Earnings come out February 11th. As I write shares trade at $9.35. Look for a bounce back to $12 by March 2009.

*Disclaimer-I own shares of Activision in my Sogotrade account.

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