q1-2013
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Funcom Q1 sales and restructuring keep studio moving forward
If it's not the best news ever, at least we've got some good news from Funcom today. The studio posted its first quarter financial report, showing that it had solid sales and "significant" operating expense savings because of the recent restructuring of its organization. Funcom made over $6.3 million of revenue in the first quarter, mostly thanks to sales and subscriptions of The Secret World and Age of Conan. The studio said that it saved almost $1.2 million of operating expenses in the same period thanks to the restructuring. Also, The Secret World made more money in Q1 2013 than Q4 2012 thanks to its new business model. In terms of game news, Funcom is pushing forward with its LEGO Minifigures MMO, the new Anarchy Online graphic engine, a summer release for Issue #7 of The Secret World, and development of several smaller titles. Both LEGO and Funcom will be working to "establish closer integration between the physical product and the game." Finally, thanks to recent decisions by the studio, both Anarchy Online and The Secret World are boasting larger numbers of players than in the previous quarter.
Gamestop: 'Xbox has said that they do support' used games market
Gamestop's approach to the Xbox One's nebulous pre-owned game policies – which may include charging players a fee for booting up a used game – involves emphasis on digital adaptation, and letting Microsoft do the talking. "I figured that question would come up," Gamestop President Tony Bartel said during a financial call's Q&A segment. "Definitely Xbox has said that they do support the trade-in/resale games at retail and that they want to handle communication from this point forward on that. I think what is important to note is that all three of the consoles that have launched have now come back and they say, 'I realize the value of the buy-sell-trade model,' and they have built that into their new consoles moving forward. We anticipate that we are going to be able to leverage that, like we leverage it on the consoles today." Microsoft has yet to clear up its used-game policy with the Xbox One, including whether it will charge a fee for pre-owned playtime. Gamestop generates the majority of its profit from used game and hardware sales, and following Microsoft's Xbox One event, Gamestop's stock fell five percent. Responding to another Xbox One question, Gamestop executives noted that its stores have systems for selling digital content, and they've sold digital products in the past. "Digital content can be easily discovered," Bartel said. "We will actually work with Microsoft and we will work with Sony as they come out with – I guess what you would call 'non-gaming entertainment properties.' We'll be selling those in our store." Customers will be able to pay for this content with trade-in currency, other executives said. In the previous generation transition, Gamestop saw people trade in all of their old games and systems to start fresh, and said it expected customers to do the same this time around. In the first 48 hours after the Xbox One's reveal, 250,000 people signed up for Gamestop's first-to-know list. "There's lots of rumors out there," Bartel said. He later continued, "I, for one, am very interested in what they're going to say at E3." Aren't we all?
NCsoft sales down from last quarter, up from last year
A recent earnings report suggests that NCsoft's sales have slipped from Q4 2012 to Q1 2013, although the studio is quick to point out that the showing was "solid" particularly when compared to sales from a year ago. While sales were down 35% and net income was down 49% from the last quarter, sales were up 31% and net income was up 322% year-over-year. Guild Wars 2 accounted for 21% of sales in the first quarter, in addition to Blade and Soul's 9%, Aion's 16%, and the usual Lineage cavalcade (Lineage 1 represented 38% of sales alone with its subscriptions). While 64% of NCsoft's sales were in Korea, only 13% were in North America and 8% in Europe. The decrease in NA and EU contributions was due to "the reduction in Guild Wars 2 package sales," according to the report. All of NCsoft's subsidiaries posted drops in sales from last quarter except for NC Taiwan. [Update: Also of note in the earnings call is the news that NCsoft's Nah Seong Chan says the company is "preparing an expansion pack" but has yet to decide when it might launch. Very interesting news indeed as ArenaNet said as recently as March that it was not working on an expansion. Thanks to Mike and Robert for the tips!]
Activision Blizzard closes out Q1 2013 with $1.32 billion net revenue
The first quarter of Activision Blizzard's fiscal 2013 has come to a close, with the massive developer/publisher reporting $1.324 billion in net revenue for the three months ending March 31, 2013. This figure is $164 million beyond Activision Blizzard's prediction for the quarter ($1.16 billion), and 12.96 percent more than the $1.172 billion earned during the same period last year. "The shift in release dates of competing products, the disappointing launch of the Wii U, uncertainties regarding next-generation hardware, and subscriber declines in our World of Warcraft business all raise concerns, as do continued challenges in the global economy," CEO Bobby Kotick said in the report. "For these reasons, we remain cautious." Despite this, Activision Blizzard is raising its net revenue outlook for calendar year 2013 by 3.3 percent, from $4.085 billion to $4.22 billion. Kotick attributed the company's successful quarter to Starcraft 2: Heart of the Swarm and World of Warcraft, as well as continued consumer interest in Call of Duty and Skylanders.
T-Mobile USA Q1 2013 revenue drops 5 percent for second consecutive quarter to $4.7 billion
T-Mobile USA has been making a big push for pre-paid customers since it launched its Uncarrier plans in March, and it seems to be working -- unfortunately, at the expense of more lucrative post-paid clients. While pre-paid revenue bumped to $503 million over $474 million last quarter, post-paid revenue fell to $3.2 billion, a drop of 4.7 percent, and overall revenue dropped by about the same percentage to $4.7 billion from $4.9 billion in Q4 2012. Net income also swooned year-over-year to $107 million from $200 million, but was up over last quarter, when the company took a small net loss. On the bright side, the company did pick up 579,000 customers in total, and claimed its lowest client turnover rate, 1.9 percent, since way back in 2008. Another silver lining has been the addition of the iPhone, as the company has already pushed around 500,000 of the 4, 4S and 5 models out the door since it launched at the Uncarrier event -- perhaps due to the very attractive pricing. Of course, with MetroPCS soon joining forces with T-Mo thanks to the recent merger, all that might change -- once we see how the powers-that-be decide to divvy up the two carriers.
Mobile Miscellany: week of April 29th, 2013
If you didn't get enough mobile news during the week, not to worry, because we've opened the firehose for the truly hardcore. This week brought a leak of the BlackBerry R-Series smartphone in red, a clever new notification system from the Paranoid Android team and quarterly earnings from Leap Wireless, the parent company of Cricket. These stories and more await after the break. So buy the ticket and take the ride as we explore all that's happening in the mobile world for this week of April 29th, 2013.
Mobile Miscellany: week of April 22nd, 2013
If you didn't get enough mobile news during the week, not to worry, because we've opened the firehose for the truly hardcore. This week, a familiar smartphone leaked that's said to join the prepaid ranks at Verizon Wireless, AT&T swung back against the DOJ, and Rogers issued its quarterly earnings. These stories and more await after the break. So buy the ticket and take the ride as we explore all that's happening in the mobile world for this week of April 22nd, 2013.
Smartphones out-shipped feature phones for the first time ever worldwide, says IDC
Q1 2013 marks the first time that smartphones made up the majority of cellphones shipped across the world, according to numbers from industry analyst IDC. 216 million handsets with computer-like functionality left factories compared to 419 million total, making up a solid 51.6 percent of the pie. Another trend spotted by the pollster was the emergence of Chinese phone makers, particularly ZTE and Huawei, who've notably displaced Blackberry and Nokia in the top five for smartphones sold. Meanwhile, Samsung improved its lead over Apple in smartphone shipments over last quarter, jumping from 29 percent to a 32.7 percent share in Q1, while Apple slid from 23 percent to 17.3 percent. Sony dropped out of the top 5 in that category, while LG surged to 3rd place at 10.3 million units shipped, with Huawei and ZTE rounding out the top 5. Meanwhile, Samsung and Nokia continued to dominate overall cellphone shipments with a 27.5 and 14.8 percent share of the overall market, respectively. However, Nokia itself isn't too optimistic about the feature phone portion of those sales continuing, as it mentioned in its last financial statement. And the fact that people are happy to surf the web on their phones? As we've seen, that doesn't bode too well for the computer industry.
MetroPCS reveals Q1 earnings, will make T-Mobile merger official April 30th
By now, you're probably aware that MetroPCS shareholders voted in favor of a merger with T-Mobile, and with regulatory red tape out of the way, both companies are now set to become one on April 30th. Now, MetroPCS has laid its Q1 2013 financials bare, which provides us with an excellent peek at T-Mobile's future partner. First off, the company is making money, and its operational income is actually rising, but it's also dealing with increased costs from loans, taxes and the like. Overall, MetroPCS reported a net income of $19.4 million for the first quarter, which is down from $21 million just one year ago. Speaking of loans, MetroPCS has a ton of them. Its liabilities now sit at $10.3 billion, and its managed to take on $3.4 billion in financing during the last year alone. From a balance sheet perspective, 75 percent of the company's assets exist as debt, and this is a burden that T-Mobile must now take on. Naturally, much of this merger was in effort to score additional spectrum, but Ms. Magenta also stands to gain 9 million new customers once the deal completes, 39 percent of which are LTE subscribers. Better yet, with a churn rate of 2.9 percent, they're sticking around now more than any previous time in company history.
Sprint reports quarterly net loss of $643 million, sees iPhone sales drop by a third
Sprint managed to lose a million customers and over a billion dollars last quarter. This time it's not quite as bad, with a net loss of $643 million on revenue that was broadly equivalent to the same quarter of last year (around $8.8 billion). Those following the carrier's big iPhone gamble will note that sales of Apple smartphones fell by around a third relative to last quarter, from 2.2 million down to 1.5 million. Total smartphone sales reached 5 million, which Sprint describes as "strong" and which helped it to slightly increase the amount of profit it makes from each postpaid customer. However, this wasn't enough to offset the impact of losing another half a million customers, specifically due to the ongoing exodus of Nextel subscribers. Partly as a result of this, the company's revenues continue to be wiped out by its huge costs of doing business -- not that its potential suitors seem to mind.
AT&T Q1 2013 earnings: $3.7 billion income on revenue of $31.4 billion
AT&T just posted its earnings for the first quarter of 2013, and the market couldn't help but ding the company, which is now trading down in after hours markets. The business as a whole posted a net income of $3.7 billion, which is slightly up from $3.6 billion one year ago. Meanwhile, company revenues took a slight hit, which sit at $31.4 billion -- down 1.4 percent from the previous year. In terms of the company's wireless business, though, there's plenty of reason for optimism. The company was able to snag an additional 296,000 postpaid subscribers and put a solid 1.2 million people on smartphone plans during the quarter. For those keeping track, smartphone sales now account for 88 percent of AT&T's postpaid handsets. Unsurprisingly, the company is making more money than ever off of its data plans, which account for $5.1 billion of the company's business. As for the wireless segment as a whole, income is up 21 percent and AT&T is pulling in revenues of $16.6 billion with a 28 percent profit margin. Encouraging signs were also revealed for U-verse, as the company's broadband service netted an additional 731,000 internet subscribers and 232,000 television subscribers during the quarter -- its best performance in two years -- for a grand total of 8.7 million subscribers. Naturally, one segment of Ma Bell's business isn't looking too hot, and that's the traditional wireline business, as revenues have fallen 10 percent from the previous year. Given the size of this segment, and the weakening demand for the service, it's easy to understand why investors might be slightly uneasy, even in light of all the encouraging news.
AMD Q1 2013 earnings: softer $146 million net loss on $1.09 billion revenue
Just two days after the earnings report of its storied rival, AMD has followed suit with a Q1 2013 balance sheet of its own. The company reported a net loss for the quarter of $146 million, which stings, but isn't quite so painful as the $473 million loss that it took just one quarter earlier. Meanwhile, AMD's revenue of $1.09 billion is more or less flat from the previous quarter, but has fallen by $500 million since Q1 of the previous year. The announcement was enough to make investors wince, as AMD's stock price is now declining in after-hours trading. As for a silver lining, AMD emphasized that its gear will power the upcoming PS4. If Microsoft were to make a similar decision, then perhaps AMD could turn its financial frown upside-down.
iPhone maker Hon Hai sees sudden 19 percent sales drop in 2013 Q1
Reuters is reporting that Hon Hai, the manufacturer that everyone else knows as Foxconn Technology, saw its sales tumble in the first quarter of this year. In the post-Christmas season, the iPhone maker brought in $26.9 billion -- a fall of 19 percent compared to the same quarter last year. It's a strange turn of events, seeing as 2012 turned out to be a record year for the company, but Reuters interprets the figures as being a symptom of a drop in demand for the Apple products that Hon Hai builds and is largely dependent on -- an issue that has been brewing for a while now.
HP Q1 2013 earnings: $1.2 billion in profit on revenue of $28.4 billion
HP's stock is climbing in after hours trading from news of the company's quarterly financial results. The Palo Alto firm has posted a profit of $1.2 billion for the first quarter, which is based on revenues of $28.4 billion. While the results fared better than HP's previous expectations, both profit and revenue have fallen year-over-year for the Silicon Valley mainstay, down 16 percent and six percent, respectively. With respect to the company's divisions, personal systems, printing, enterprise, services and software have each taken a hit from the previous year, with HP's financial services segment being the only unit to show growth (despite the fact that financing volume is also down). Beyond the sagging numbers, Meg Whitman is offering reason for optimism to investors, saying the company will bring "a number of new programs and disruptive innovations to market in the coming quarters, and we expect the benefits from our restructuring will accelerate through fiscal 2013." For the complete breakdown of HP's financial health, just hit up the source link.
Apple's "disappointing" quarter out-performs hugely profitable companies
In many of the financial press accounts of Apple's Q1 2013 results, the terms "disappointing" and "flat" were used to describe the company's performance. Well, as you can see in the graphic above from Statista, Apple's performance was far and away better than that of any other US company. How good was the first quarter? It was the most profitable quarter ever for a tech company at $13.1 billion in net income. The previous record? Apple's Q1 2012 net income at $13.06 billion. How did the other tech companies do? Microsoft came in a distant second place at $6.4 billion, while IBM trailed in third place at $5.8 billion. Apple's profits were more than those of Microsoft and IBM combined. Why Apple's share price is bumbling around the $460 mark at this point is still a matter of conjecture. Legg Mason portfolio manager Bill Miller said it could be that investors are beginning to think that Apple products no longer have the attractiveness to consumers that they used to. His idea for bringing the share price up? Apple should increase the dividend it began paying to shareholders. [via AppleInsider]
Disney Interactive was Disney's least profitable branch in Q1 2013
Despite revenues of $291 million during the three month period ending December 29, 2012, Disney Interactive's remaining $9 million in operating revenue (read: pre-tax profit) made it the entertainment giant's least profitable division during the first quarter of the fiscal 2013.Still, this was a marked increase over Disney Interactive's Q1 2012 performance, where it posted a loss of $28 million. Being back in black is even more impressive when you consider Interactive's reported an operating loss of $42 million just last August, making it Disney's only unprofitable sector at the time. Disney attributes this year's growth to improved performance in its social gaming businesses in the Japanese market, where a new licensing agreement has increased the amount of Disney-branded hardware and software.Of course, Disney's financial report made no mention of Junction Point or its sordid fate, but that's to be expected since the studio's closure technically happened during the second quarter of fiscal 2013. We may gain some new insight into that situation during the next round of quarterlies, but for now, all we've got to go on is Mickey's increasing popularity in the Land of the Rising Sun.
Qualcomm Q1 2013 earnings: $1.91 billion in profit on revenues of $6 billion
The folks in San Diego are making it rain once again, as Qualcomm has just announced its earnings for the quarter with $6 billion in revenues, which represents a 29 percent year-over-year increase and a new record for the firm. It seems the company's Snapdragon chips are everywhere you look these days, and it should come as no surprise that Qualcomm also hauled in a profit of $1.91 billion, which is a 36 percent hike over the previous year. Seeing that the company is so well off, it's also announced a cash dividend payment of $428 million that will go back to shareholders, along with stock repurchases in the amount of $250 million. In case you were wondering, Qualcomm managed to push 182 million of its SoC's out the door during Q1, which represents a 17 percent year-over-year increase. With the Snapdragon 800 due by mid-year, we've a feeling that it'll keep raining in San Diego for some time -- even if the nice weather says otherwise.
Apple's Q1 2013 earnings reveal Mac and iPod sales down year-over-year
Apple's just released its latest figures for Q1 2013 and buried within the overall positive earnings -- about $54.5 billion in revenues and a profit of $13.1 billion -- is a surprising sales figure. For the company's recently ended quarter, Mac sales totaled 4.1 million -- that's in stark contrast to the 5.2 million sold in the previous year-ago quarter. This startling nugget comes despite the fact that Apple issued a refreshed iMac just before the close of the holiday season -- normally a boon time for sales. But as the company's earnings call revealed, these late 2012 iMacs were apparently subject to manufacturing constraints, thus preventing Apple from shipping units to all markets. As for its lagging iPod performance, that category also saw a steep decline, dropping down by nearly 3 million in year-over-year sales and amassing just 12.7 million units sold on the backs of its latest iPod touch and iPod nano. While this dip in sales is far from a warning bell for Cupertino (hello! record quarterly profit), it certainly doesn't bode well for the halo its products have typically enjoyed.
Mutant Mudds plops onto Wii U in Q1 2013, is 'even more unique'
Mutant Mudds on Wii U has a launch plan for Q1 2013, bringing unique content to the console, Renegade Kid co-founder Jools Watsham tweets."Well, it's going to have even more unique content for a start! And, out Q1 2013," he says.Watsham outed something called Mutant Mudds Deluxe on Wii U in September, giving us a single screenshot and nothing else, the tease. Mutant Mudds is already available for the 3DS eShop and PC, with an iOS version due this week. This could be one to look out for after getting a Wii U "for your family" (it's for you; don't lie) for the holidays, since we found the 3DS version to be worthwhile and "really frustratingly/enjoyably hard in the Mega Man tradition."
Blizzard 'working hard' to launch StarCraft 2: Heart of the Swarm in first half of 2013
Blizzard is hoping to push the first StarCraft 2 expansion, Heart of the Swarm, out the door during the first half of 2013. Blizzard head Mike Morhaime made the announcement during Activision's earnings call, saying the studio is "working hard towards a first half 2013 launch."Heart of the Swarm is set to add several improvements to StarCraft 2, including multiplayer progression and new social features.
