Activision Blizzard Reports December Quarter and Calendar Year 2010 Financial Results

Activision Blizzard, Inc. ATVI today announced financial results for the calendar year and quarter ending December 31, 2010. Activision Blizzard reports results on both a GAAP and a non-GAAP basis. A reconciliation of the company's GAAP and non-GAAP results can be found in the attached tables. For calendar year 2010, Activision Blizzard's GAAP net revenues increased to $4.45 billion, as compared with $4.28 billion for 2009. On a non-GAAP basis, the company's net revenues were $4.80 billion, as compared with $4.78 billion for 2009. Revenues from digital channels for the calendar year were more than $1.5 billion, an increase of more than 20% year over year. For calendar year 2010, Activision Blizzard's GAAP earnings per diluted share increased to $0.33, as compared with $0.09 per diluted share for 2009. The 2010 results include a $0.16 per share non-cash reduction in the valuation of intangible assets reflecting weaker retail sales in the casual and music genres, while the 2009 results included a similar non-cash charge of $0.19 per share. On a non-GAAP basis, the company's earnings per diluted share grew 14.5% to $0.79, as compared with $0.69 per diluted share for 2009. For the quarter ended December 31, 2010, Activision Blizzard's GAAP net revenues were $1.43 billion as compared with fourth-quarter 2009 net revenues of $1.56 billion. On a non-GAAP basis, the company's net revenues for the quarter were $2.55 billion, as compared with fourth-quarter 2009 non-GAAP net revenues of $2.50 billion. Revenues from digital channels for the quarter were more than $470 million, an increase of 40% year over year. For the quarter ended December 31, 2010, Activision Blizzard had a GAAP loss per share of $0.20, inclusive of the $0.16 per share non-cash charge mentioned above. On a non-GAAP basis, the company's earnings per diluted share grew to $0.53. For the comparable quarter in 2009, the company had a GAAP loss per share of $0.23, inclusive of the $0.19 per share non-cash charge mentioned above, and non-GAAP earnings per diluted share of $0.49.