Activison smashes expectations with $4.9bn earnings

Activision has reported 2012 revenue of nearly $4.9 billion as it confidently exceeded its own expectations in the final quarter of the year and sets a new record for itself.

The fourth quarter saw the company achieve net revenues of around $1.8 billion, better then its previously estimated amount of $1.5 billion and a significant gain year-on-year when compared to $1.4 billion during the same period in 2011.

Furthermore, the company reported a growth in its online division in 2012, with digital sales representing 32% of the company's overall net revenues, amounting to $1.6 billion.

“We are very pleased to report that Activision Blizzard delivered the best performance in its history. With better-than-expected net revenues, record operating margins and record earnings, and over $1.3 billion in operating cash flow, we continue to set the industry success bar," commented CEO Bobby Kotick.

After thanking Activision's employees for delivering on the record-breaking result, Kotick cautioned that it didn't expect to match these results in the short-term as it faces a tougher economy and lacks the clout of blockbuster release Diablo III.

The company also claimed victory in the console and handheld race, saying it held the year's top titles Call of Duty and Skylanders.

James Lee

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James Lee is a freelance writer and analyst with extensive experience in the technology, media and games sectors. For the past few years he has provided content for internationally published industry reports, SEO companies and a variety of news-focused websites. Prior to this, James was responsible for covering news and producing in-depth features for GamesIndustry.biz while occasionally contributing to its sister-site. Eurogamer.net. In addition to this he has contributed to other notable sites such as CVG.co.uk, Edge-Online and DigitalSpy.