Activision Blizzard — Q2 2013 Earnings Presentation
12 slides from Activision Blizzard's earnings presentation, Aug 1, 2013
Slide 1: Second Quarter 2013 Results
Second Quarter 2013 Results August 1, 2013
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Please review our SEC filings on Form 10-K and Form 10-Q The statements contained in this presentation that are not historical facts are forward-looking statements, including, but not limited to, statements about (1) projections of revenues, expenses, income or loss, earnings
Slide 3: Activision Blizzard Q2 2013 Highlights
Activision Blizzard Q2 2013 Highlights Performance driven by innovation and quality • Independence and industry leadership: • Agreement announced July 25th to make Activision Blizzard an independent company upon closing of transaction with Vivendi • #1 Third-party interactive entertainment publisher
Slide 4: Activision Blizzard Q2 2013 Results Summary
Activision Blizzard Q2 2013 Results Summary Performance driven by innovation and quality Q2 2013 Q2 2012 Outlook1 Q2 2013 Yr./Yr. GAAP Net Revenues $1,075M $980M $1,050M (2%) GAAP EPS $0.16 $0.21 $0.28 75% Non-GAAP2 Net Revenues $1,054M $590M $608M (42%) Non-GAAP2 EPS $0.20 $0.05 $0.08 (60%) Operati
Slide 5: Financial Outlook, as of August 1, 2013
Financial Outlook, as of August 1, 2013 Pre-transaction1 Q3 2013 Q4 2013 2013 Non- Non- Non- GAAP GAAP* GAAP GAAP* GAAP GAAP* Net Revenues $635M $585M $1.3B $2,252M $4,310M $4,250M COGS (Prod/Online) 23% 25% 24% 26% Operating Expense, incl. Royalties 68% 66% 48% 44% Operating Margin, may not foot du
Slide 6: Financial Outlook, as of August 1, 2013
Financial Outlook, as of August 1, 2013 Pre-transaction1, post-transaction as expected to be reported, and pro-forma* Transaction expected to be highly accretive to 2013 EPS on a pro-forma* basis Pre-transaction1 Q1A Q2A Q3E Q4E 2013E GAAP EPS $0.40 $0.28 $0.03 $0.06 $0.77 Non-GAAP EPS $0.17 $0.08 $
Slide 7: Skylanders SWAP Force
Skylanders SWAP Force Planned to launch in October 2013 Skylanders franchise: SWAP Force, our 2013 game: • #1 franchise in NA and Europe YTD1 • All figures sold to date are playable in SWAP Force • Retail sales over $1.5B as of July 31, 2013 • 16 new SWAP Skylanders figures with 256 • Named 2013’s O
Slide 8: Record Q2 and 1H engagement and digital revenues
Apr-08 Jun-08 Aug-08 Oct-08 Black Ops Dec-08 Black Ops II World at War Feb-09 Modern Warfare Apr-09 Modern Warfare 2 Modern Warfare 3 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Call of Duty Online 1Activision Blizzard internal estimates. Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Record Q2 and 1H enga
Slide 9: Activision Publishing Highlights & Pipeline
Activision Publishing Highlights & Pipeline #1 Third Party Videogame Publisher in N. America & Europe Combined in Q2 & 1H1 Outsold Modern Warfare 3 at Retail in Q2 and 1H; Record digital performance.2 Planned to launch on PS3 & Xbox 360 on 11/5/13 & on PS4 and Xbox One this year. Developing a microt
Slide 10: Blizzard Entertainment Highlights
Blizzard Entertainment Highlights Approximately 7.7M subscribers as of 6/30/13 Planned to launch on PS3 and Xbox 360 on September 3, 2013 Over 12M copies for PC already sold* Blizzard’s 16th #1-selling PC game New free-to-play, collectible card game for Windows, Mac, and iPad Launch planned in secon
Slide 11: Use of Non-GAAP Measures
Use of Non-GAAP Measures As a supplement to our financial measures presented in accordance with GAAP, Activision Blizzard presents certain non-GAAP measures of financial performance. These non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or as mor
Slide 12: Second Quarter 2013 Results: Q&A
Second Quarter 2013 Results: Q&A August 1, 2013