Upcoming AWS Coverage on Take-Two Interactive Software Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 11, 2016 / Active Wall St. announces its post-earnings coverage on Activision Blizzard, Inc. (NASDAQ: ATVI). The company released its financial results for the third quarter fiscal 2016 on November 02nd, 2016. The biggest videogame company in the U.S. by market value reported higher-than-expected revenue, boosted by the success of its videogames and acquisition of mobile game-maker King. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Activision Blizzard's competitors within the Multimedia & Graphics Software space, Take-Two Interactive Software, Inc. (NASDAQ: TTWO), reported its results for fiscal second quarter 2017 on November 02, 2016. AWS will be initiating a research report on Take-Two Interactive Software in the coming days.

Today, AWS is promoting its earnings coverage on ATVI; touching on TTWO. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=ATVI

http://www.activewallst.com/registration-3/?symbol=TTWO

Earnings Reviewed

For the three months ended on September 30th, 2016, Activision Blizzard's net revenues were a third quarter record of $1.57 billion, higher by 58% as compared with $990 million for Q3 2015. GAAP net revenues from digital channels were an all-time quarterly record of $1.34 billion, more than double by 114% from the year earlier quarter. The company's total adjusted revenue, including deferred revenue, rose to $1.63 billion from $1.04 billion in Q3 2015, and above analysts' estimates of $1.57 billion.

Activision Blizzard's GAAP revenues from in-game content reached records of nearly $1 billion this quarter. During Q3 2016, the company's GAAP earnings per diluted share were Q3 record $0.26, soaring 53% as compared with $0.17 for Q3 2015. On an adjusted basis, the company's earnings per diluted share were a third-quarter record $0.49, rocketed 145% as compared to $0.20 in the year ago period.

Results in Details

The Activision and Blizzard segments had combined Q3 2016 record performance with net revenues up by 15% to $1.10 billion and $444M in operating income, a 78% increase on y-o-y basis. Year-to-date, the combined segments generated record revenue of $2.83 billion, an increase of 22% from the year earlier period, and record operating income of $1.05 billion, a 67% increase on a y-o-y basis. During Q3 2016, Activision Blizzard generated a Q3 record $456 million in operating cash flow. For the trailing twelve months ended September 30, 2016, operating cash flow totaled $2.36 billion, a 68% increase on a y-o-y basis.

Key Highlights

During Q3 2016, Activision Blizzard had 482 million Monthly Active Users (MAUs). Blizzard had the biggest quarterly online player community in its history, with 42 million MAUsA, up 50% on a y-o-y basis. On August 30, 2016, Blizzard launched World of Warcraft: Legion, which sold-through 3.3 million copies on day one, matching all-time records achieved by previous expansions, and ranking amongst the fastest-selling PC games ever.

Overwatch became Blizzard's fastest game ever to reach over 20 million players globally, with a roughly even player base split between east and west. Blizzard's Hearthstone®: Heroes of Warcraft? had record quarterly MAUsA, which grew a double-digit percentage year-over-year.

Activision had the biggest third quarter online player community in its history with 46 million MAUsA. Over the last two years, Activision has grown its MAUsA by 18%.

King MAUsA of 394 million was down slightly during Q3 2016. King had three of the top-20-grossing titles in the U.S. mobile app stores for the eleventh consecutive quarter.

Financials

During Q3 2016, Activision- Blizzard made repayments to reduce its total outstanding term loans by $185 million, bringing its total prepayments in 2016 to $1.5 billion.

Outlook

For FY16, Activision Blizzard raised adjusted revenue forecast to $6.53 billion from the previous forecast of $6.48 billion, and earnings expectations to $2.02 per share from the prior guidance of $1.90. For Q4 2016, the company has forecasted adjusted earnings of $0.74 per share and revenue of $2.38 billion.

Stock Performance

Activision Blizzard's share price finished yesterday's trading session at $38.70, slipping 3.61%. A total volume of 15.00 million shares exchanged hands, which was higher than the 3 months average volume of 8.49 million shares. The stock has rallied 1.07% and 12.86% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have gained 0.79%. The stock is trading at a PE ratio of 38.86 and has a dividend yield of 0.67%.

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SOURCE: Active Wall Street