Activision Blizzard Annual Report

Only available on StudyMode
  • Topic: Revenue, Blizzard Entertainment, Activision
  • Pages : 158 (46380 words )
  • Download(s) : 44
  • Published : May 8, 2013
Open Document
Text Preview
aInnovation Drives Growth
2011 ANNUAL REPORT

Generating Another Record Year

1.6B 30.3% $ 0.165 $ 0.93 50M
$
(1) (2)

record revenue from digital channels (1)

record oPerating margin (2)

record dividend increased 10% in 2011

record earnings Per share (2)

record online monthlY active users in dec. 2011

Represents Non-GAAP revenues from subscriptions and memberships, licensing royalties, value-added services, downloadable content, digitally distributed products, and wireless devices. For a full reconciliation see tables at the end of the annual report. Non-GAAP—for a full reconciliation see tables at the end of the annual report.

activision blizzar d, inc.

Consistently Providing Innovative Entertainment Experiences

Best selling video game ever in a single Year 2011.

activision PuBlishing’s largest new iP launch ever.

#1 suBscriPtion Based mmorPg as of 12/31/11.

one of the fastest growing Premium online services ever created.

page one

activision blizzar d, inc.

Innovation Drove Record Earnings Per Share

$0.92 $0.79 $0.69

$0.93

16%

CAGR 2009–2011

220%
CAGR 2009–2011

$0.33

$0.09

2009

2010

2011

2009

2010

2011

— GAAP EArninGs PEr shArE —
DiluteD

— nOn-GAAP EArninGs PEr shArE (1) —
DiluteD

Non-GAAP—for a full reconciliation see tables at the end of the annual report. (1)

page thr ee

ACtIvISION BlIzzAR D, INC.

Innovation Expanded Operating Margins to a New Record

27.9% 25.8%

30.3% 28.5%

bAsis POiNT iNCREAsE

450

bAsis POiNT iNCREAsE

2,850

10.5%

(0.6%)
2009 2010 2011 2009 2010 2011

— GAAP OPErAtinG MArGins —

— nOn-GAAP OPErAtinG MArGins (1) —
(1) Non-GAAP—for a full reconciliation see tables at the end of the annual report.

page fi v e

ACtIvISION BlIzzAR D, INC.

Innovation Delivered Record Digital Revenues

34% 32% 29% 27% 32%

35%

$

1.64
biLLiON

$

1.56
biLLiON

2009

2010

2011

2009

2010

2011

— GAAP DiGitAl rEvEnuEs —
As PERCENTAGE Of TOTAL

— nOn-GAAP DiGitAl rEvEnuEs (1) —
As PERCENTAGE Of TOTAL
(1) Non-GAAP—for a full reconciliation see tables at the end of the annual report.

page sev en

activision blizzar d, inc.

Innovation Creates Shareholder value

$ $

3.3B 3.1B 3.5B

free cash flow(1)
2009–2011

caPital returned to shareholders (2) 96% PaYout ratio (3)
2009–2011

$

cash and investments (4)
As Of DEcEMbEr 31, 2011

(1)

Free Cash Flow is a non-GAAP metric defined as Operating Cash Flow less Capital Expenditures. For a full reconciliation see tables at the end of the annual report. Dividends and share repurchases. Defined as dividends and share repurchases as a percentage of free cash flow. Includes short- and long-term investments.

(2) (3) (4)

page ni ne

Innovation Drives our Growth, Makes us Stronger than Ever

2011 annual r eport

Dear Shareholders
In 2011, we achieved record financial results and released some of the very best games in our long history as game makers. Creating great games that are commercially successful has allowed us to create incremental book value resulting in long-term capital appreciation for our investors. Over the past 20 years, we have doubled our revenues every four to five years and we have steadily increased our operating margins. Based on the metric of growth in per-share book value, our 20-year results reflect an outperformance of the S&P 500 Index by an average of over 200 basis points per year, despite the fact that we now have a high payout ratio with regard to share repurchases and dividends. In that same period, our shareholders have been rewarded for our performance. the company’s shares have appreciated at a double-digit compound average annual growth rate and have significantly outperformed the S&P 500. As our company continues to grow, it will be hard to continue at these rates, but we intend to try as hard as we have for the last 20...
tracking img