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Activision Blizzard Record Results, Layoffs

Activision Blizzard announces fourth quarter and 2016 financial results, calling these both "better-than-expected" and "record." In spite of that, Kotaku reports cuts at Activision Publishing, a division that includes Infinity Ward, Beenox, and Treyarch. Here's word on the financial results:

For the year ended December 31, 2016, Activision Blizzard’s net revenues presented in accordance with Generally Accepted Accounting Principles (“GAAP”) were a record $6.61 billion, as compared with $4.66 billion for 2015, an increase of 42%. GAAP net revenues from digital channels were a record $4.87 billion, growing 94% year-over-year. GAAP operating margin was 21%. GAAP earnings per diluted share were a record $1.28, as compared with $1.19 for 2015, an increase of 8%. On a non-GAAP (redefined) basis, the company’s operating margin was a record 35% and earnings per diluted share were a record $2.18, as compared with $1.30 for 2015, an increase of 68%.

For the quarter ended December 31, 2016, Activision Blizzard’s net revenues presented in accordance with GAAP were an all-time record of $2.01 billion, as compared with $1.35 billion for the fourth quarter of 2015, an increase of 49%. GAAP net revenues from digital channels were an all-time record of $1.45 billion, growing 101% year-over-year. GAAP operating margin for the fourth quarter was 21%. GAAP earnings per diluted share were $0.33, as compared with $0.21 for the fourth quarter of 2015, an increase of 57%. Non-GAAP (redefined) operating margin was a fourth-quarter record 34%. On a non-GAAP (redefined) basis, the company’s earnings per diluted share were an all-time record $0.65, as compared with $0.25 for the fourth quarter of 2015, an increase of 160%.

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33. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 23:51 bhcompy
 
Yifes wrote on Feb 10, 2017, 21:45:
thecakeisalie wrote on Feb 10, 2017, 20:46:
This company is a cancer in the gaming industry. A large chunk of those profits were from microtransactions (e.g. gambling boxes).

If that is your definition of cancer then Valve is the worst offender by far, with all the actual CSGO and DOTA gambling going on.

So, CCP is the cure to cancer? They were cold blooded in their murder of external gambling in relation to EVE this past year
 
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32. Re: On Sale Feb 11, 2017, 15:35 Kxmode
 
Cutter wrote on Feb 11, 2017, 13:58:
Kxmode wrote on Feb 11, 2017, 00:44:
It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

That's an exceedingly immoral position for someone who fancies himself an Xtian. Or are you once of those Trump phony Xtians who equates money and power with god. Yeah, who would Jesus fuck over for a buck? It would be comical if wasn't so sad that most atheists and agnostics are far, far more moral than most religious types who claim to be.

In indifference to your comment, I will simply tell you that I am living like no one else now so that I can live like no one else later. I will let you try and figure out what that means since you "know" me so well.

Beamer wrote on Feb 11, 2017, 13:02:
He has one share.

You're right. I have one share of ATVI. However, indirectly via several funds, I mutually benefit from $728 million worth of shares, or roughly 19.5 million. In other words, the couple bucks I made on that one share pales in comparison with what I made elsewhere.

This comment was edited on Feb 11, 2017, 15:45.
 
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William Shakespeare's "Star Wars" Act I, Scene 4: CHORUS: And now, dear viewers, shall our play go to \ A Planet stark and drear for our next scene. \ Imagine sand and rocks within thy view. \ Prepare thy souls - we fly to Tatooine!
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31. Re: On Sale Feb 11, 2017, 14:19 {PH}88fingers
 
Beamer wrote on Feb 11, 2017, 13:02:
He has one share.


Which, to go on a tangential rant which doesn't specifically have anything to do with him, I do adore when middle class people act as if companies doing things for shareholders is good for them, because they hold $5,000 to $50,000 in that company, when in reality they're usually better off if the company does what's best for its employees and not its shareholders.

Being a shareholder only matters when you hold a tangible percentage of a company. If you don't, you're better off with that company giving its profits to its employees. Basically, if you aren't super rich, the company doing what's best for its shareholders usually means screwing you over and leaving you in a lesser place, even if you made $3,000 on the stock that year.


That kind of thinking goes way over the head of the majority of the people unfortunately. Especially right wingers. Even so many millionaires choose to fuck over everyone else for that slim slice of the shit given away to the families with hundreds of millions/billions.
When the richest 84 people in the world have as much wealth as the 3,5 billion poorest, you can quickly extrapolate what is really going on. But hey smaller government , dont tread on me usa usa guns abortion or something
 
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30. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 14:11 Stormsinger
 
ViRGE wrote on Feb 11, 2017, 06:38:
They did indeed have a record year in terms of revenue. However their actual profitability was only so-so. The company made $966M on $6.61B, for a profit margin of ~15%. Last year they made just a bit less profit - $892M - on $4.66B in revenue. Which works out to a 19% margin.

Well yeah, when you point that out, it's obvious that they -had- to lay people off. Only a billion dollars of profit, what else could they do?

This kind of thinking (Activision's, not yours personally) is literally going to destroy our civilization. Short term above all is simply not a sustainable plan.
 
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29. Re: On Sale Feb 11, 2017, 13:58 Cutter
 
Kxmode wrote on Feb 11, 2017, 00:44:
Cutter wrote on Feb 10, 2017, 23:03:
Yeah but GabeN is just indifferent whereas Nodick is outright evil.

It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

That's an exceedingly immoral position for someone who fancies himself an Xtian. Or are you once of those Trump phony Xtians who equates money and power with god. Yeah, who would Jesus fuck over for a buck? It would be comical if wasn't so sad that most atheists and agnostics are far, far more moral than most religious types who claim to be.

Rolleyes
 
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You've got to be cruel to be kind...in the right measure.
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28. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 13:08 Medic
 
As #18 mentioned. Revenue is not profit.  
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27. Re: On Sale Feb 11, 2017, 13:02 Beamer
 
He has one share.


Which, to go on a tangential rant which doesn't specifically have anything to do with him, I do adore when middle class people act as if companies doing things for shareholders is good for them, because they hold $5,000 to $50,000 in that company, when in reality they're usually better off if the company does what's best for its employees and not its shareholders.

Being a shareholder only matters when you hold a tangible percentage of a company. If you don't, you're better off with that company giving its profits to its employees. Basically, if you aren't super rich, the company doing what's best for its shareholders usually means screwing you over and leaving you in a lesser place, even if you made $3,000 on the stock that year.
 
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26. Re: On Sale Feb 11, 2017, 12:48 Rigs
 
Agent-Zero wrote on Feb 11, 2017, 11:09:
Kxmode wrote on Feb 11, 2017, 04:01:
Agent-Zero wrote on Feb 11, 2017, 00:58:
Kxmode wrote on Feb 11, 2017, 00:44:
Cutter wrote on Feb 10, 2017, 23:03:
Yeah but GabeN is just indifferent whereas Nodick is outright evil.

It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

it sounds like your assessment comes from wanting everyone to know you are a shareholder and (or) a big deal. still, i think the post where you already mentioned that fact was more than enough

Did I ruffle your feathers? Confused

no im just jealous over how rich and powerful and mighty you are

Hey, Kxmode, I have a couple of Nerf guns, some pool noodles, all of Idubbbz videos downloaded to a USB flash drive and the DVD boxset of the FRED movies. I say we string him up and go Breaking Bad on his ass...

=-Rigs-=
 
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"I remember feeling profoundly disappointed at the scene when Byeck's missus gives him a hidden blade and says, 'This is a weapon from ancient times!' BITCH, we're IN 'ancient times'!" - Yahtzee, 'Assassin's Creed: Origins'
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25. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 12:09 Creston
 
We had record profits! Quick, fire a bunch of people!

:\
 
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24. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 11:42 Prez
 
Don't shareholders generally like layoffs from "underperforming" departments?  
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“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
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23. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 11:36 CJ_Parker
 
loomy wrote on Feb 11, 2017, 11:22:
IMO the mediocre sales of of COD IW could have to do with anything, including a fickle audience, a fatigued audience, or the competition. but I bought COD IW and compared it to COD4, and I can tell you that COD IW is not better than COD4. COD IW is a mediocre game, and it deserves mediocre sales

Yeppers. Those fuckers are drawing all the wrong conclusions from this shit. "OMG scifi settings don't sell! Quick. Let's go back to making WW2 shooters to make up for the missed sales twofold". What a bunch of fucking idiots... Rolleyes
 
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22. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 11:22 loomy
 
IMO the mediocre sales of of COD IW could have to do with anything, including a fickle audience, a fatigued audience, or the competition. but I bought COD IW and compared it to COD4, and I can tell you that COD IW is not better than COD4. COD IW is a mediocre game, and it deserves mediocre sales  
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21. Re: On Sale Feb 11, 2017, 11:09 Agent-Zero
 
Kxmode wrote on Feb 11, 2017, 04:01:
Agent-Zero wrote on Feb 11, 2017, 00:58:
Kxmode wrote on Feb 11, 2017, 00:44:
Cutter wrote on Feb 10, 2017, 23:03:
Yeah but GabeN is just indifferent whereas Nodick is outright evil.

It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

it sounds like your assessment comes from wanting everyone to know you are a shareholder and (or) a big deal. still, i think the post where you already mentioned that fact was more than enough

Did I ruffle your feathers? Confused

no im just jealous over how rich and powerful and mighty you are
 
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20. Re: Out of the Blue Feb 11, 2017, 10:43 descender
 
They laid people off from the less-profitable areas of their company... this isn't hard.

Infinity Ward and Beenox haven't been relevant for like a decade and Treyarch has been spiraling the drain since MW. They are utter failures as development houses in most of our minds... and the "record breaking profits" have nothing to do with any of them. Why shouldn't they be laid off?
 
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19. Re: On Sale Feb 11, 2017, 09:10 {PH}88fingers
 
Agent-Zero wrote on Feb 11, 2017, 00:58:
Kxmode wrote on Feb 11, 2017, 00:44:
Cutter wrote on Feb 10, 2017, 23:03:
Yeah but GabeN is just indifferent whereas Nodick is outright evil.

It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

it sounds like your assessment comes from wanting everyone to know you are a shareholder and (or) a big deal. still, i think the post where you already mentioned that fact was more than enough


LOL what I was thinking
 
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18. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 06:38 ViRGE
 
Not to stick up for Activision, but if you dig a bit deeper their financials aren't all that great.

They did indeed have a record year in terms of revenue. However their actual profitability was only so-so. The company made $966M on $6.61B, for a profit margin of ~15%. Last year they made just a bit less profit - $892M - on $4.66B in revenue. Which works out to a 19% margin.

And if you go back farther still, this wasn't even their best year for overall profitability. In 2013 they booked $1.01B profit on $4.58B in revenue, for a margin of 22%.

Ultimately Activision booked a lot of revenue this year, but they also spent a heck of a lot more money in doing so. So I can see why they'd want to tighten their proverbial belt: growing their revenue by $2B isn't all that useful/productive when their operating expenses went up by roughly the same amount.

Profitability aside though, a $2B revenue jump in a year is absolutely huge. I'm very curious where the additional money is coming from, if anyone knows.
 
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17. Re: On Sale Feb 11, 2017, 05:53 killer_roach
 
Kxmode wrote on Feb 11, 2017, 00:44:
Cutter wrote on Feb 10, 2017, 23:03:
Yeah but GabeN is just indifferent whereas Nodick is outright evil.

It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

I'd at least like to know some of the details regarding it. Sounds like they're winding down a couple of small departments, leaving staffers with nothing to work on. I'd hope given the circumstances that they've been given some time to prepare (including possibly transferring into a position within the company where their skills are still needed) and, better yet, some sort of severance or support in transition. Common practice for mid-level people being laid off in restructuring, but I have no idea the specifics as to who is being let go to even fathom a guess as to how they'd arrange things.
 
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16. Re: On Sale Feb 11, 2017, 05:05 Luke
 
Kxmode wrote on Feb 11, 2017, 00:44:
Cutter wrote on Feb 10, 2017, 23:03:
Yeah but GabeN is just indifferent whereas Nodick is outright evil.

It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

ZZZZzzzzzzzzzz Wall what a Clown
 
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15. Re: On Sale Feb 11, 2017, 04:01 Kxmode
 
Agent-Zero wrote on Feb 11, 2017, 00:58:
Kxmode wrote on Feb 11, 2017, 00:44:
Cutter wrote on Feb 10, 2017, 23:03:
Yeah but GabeN is just indifferent whereas Nodick is outright evil.

It sounds like your assessment comes from personal experience and less from how they manage their products in the market. As far as I'm concerned as long as companies I've invested in as a shareholder are making profits legally and have some corporate governance and (or) responsibility then they're fine by me. Still, I think laying off staff after having a record quarter is uncool.

it sounds like your assessment comes from wanting everyone to know you are a shareholder and (or) a big deal. still, i think the post where you already mentioned that fact was more than enough

Did I ruffle your feathers? Confused
 
Avatar 18786
 
William Shakespeare's "Star Wars" Act I, Scene 4: CHORUS: And now, dear viewers, shall our play go to \ A Planet stark and drear for our next scene. \ Imagine sand and rocks within thy view. \ Prepare thy souls - we fly to Tatooine!
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14. Re: Activision Blizzard Record Results, Layoffs Feb 11, 2017, 03:40 El Pit
 
Kxmode wrote on Feb 10, 2017, 19:15:
Business Suit: We had a profitable year. Records were shattered!
Employee: Awesome!
Business Suit: That's why we need to lay you off.
Employee: Nice! Wait. What?

Immediately after this scene
Business Suit: Ah... Another poor soul set free to help making Trumperica great again! Oy, bitch, order me that vintage Porsche I wanted to add to my collection! GIMME GIMME GIMME!
 
They're waiting for you, Gabe, in the test chamber!
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