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Netflix releases worldwide subscriber stats by region for the first time
For the first time, Netflix is reporting its international business operating results by region. In a filing with the Securities and Exchange Commission (SEC), Netflix shared its streaming revenue and membership info for the US and Canada; Europe, Middle East and Africa; Asia-Pacific and Latin America. This change in how Netflix reports its earnings data highlights how important markets outside the US have become -- especially as Netflix faces new competition.
Mark Zuckerberg still won't ban 'political' ads from Facebook
For the better part of the past four years, Facebook just hasn't been able to keep its name out of the bad news cycle. The latest backlash the company is facing has to do with its political ad policies, which essentially allow politicians to spread misinformation on the site. CEO Mark Zuckerberg addressed the topic during Facebook's Q3 2019 earnings call today, saying he doesn't agree with "critics" who claim the company won't ban these controversial ads because "all we care about is money." Zuckerberg said ads from politicians will be less than 0.5 percent of Facebook's revenue this year, noting that the $5 billion FTC fine was more than 10 times more costly for the company.
HBO Max can't come fast enough for AT&T
If AT&T's convoluted TV streaming options didn't convince you that the company was struggling, maybe its Q3 earnings will. According to the latest earnings report, released today, the company's revenue dropped 2.5 percent, with Warner Media revenue falling 4.4 percent, in the third quarter. It lost 1.2 million premium TV subscribers, and AT&T Now lost nearly 200,000 subscribers.
Facebook’s FTC fine could cost it between $3 and $5 billion
Although Facebook's growth has slowed down over the past year, all the controversies it has faced in recent months haven't had an effect on its bottom line. But that may be changing. Today, during its Q1 2019 earnings report, Facebook reported a total revenue of $15.1 billion, a 26 percent year-over-year increase. The most interesting part, however, is that Facebook says it estimates spending between $3 and $5 billion as part of an ongoing investigation by the Federal Trade Commission (FTC) into its data-sharing practices.
Square Enix reports year-over-year increase in sales, income
Square Enix reported 35.4 billion yen ($308.6 million) in net sales for the second quarter, ending September 30. While that represents a 6.3 percent drop from the company's first quarter results, its six-month net sales of 73.1 billion yen ($637.9 million) is an 18.6 percent boost year-over-year. As for Square Enix's digital entertainment and gaming division, it saw 43.8 billion yen in net sales ($382 million) for the six month period, a 43.1 percent increase year-over-year. The publisher's net income also dropped 32.7 percent for the quarter to 2.3 billion yen ($20 million). Its half-year measures for net income reached 5.7 billion yen ($49.7 million), a 118.8 percent increase over the same six-month period last year. Square Enix is projecting between 150 billion and 160 billion yen ($1.3 billion - $1.4 billion) in net sales for the full year, ending in March 2015, and between 7 billion and 10.5 billion yen ($61 million - $91.6 million) in net income. [Image: Square Enix]
Activision rakes in $753 million in revenue for Q3 [Update]
Activision reported $753 million in net revenue for the third quarter (ending September 30), a nine percent increase over the publisher's $691 million in revenue recorded for the same period last year. A record 67 percent of the company's revenue came from digital channels, according to Activision's Q3 2014 financial report. The company also reported a $23 million net loss, a sizable drop from its $56 million in income reported in the same quarter last year. Looking ahead, Activision raised its full-year projections by 2 percent thanks to the positive Q3 results. It now expects to earn $4.325 billion in net revenue in 2014, $1.492 billion of which is expected in the next quarter. Besides the continued sales of its hit MMO-meets-shooter, Destiny, Activision will report sales in Q4 for another FPS that just arrived this week, Call of Duty: Advanced Warfare. The publisher's popular mobile CCG Hearthstone will land on iPhone and Android phones early next year and Android tablets by the end of this year, having already reached 20 million downloads in September. Update: Activision also noted that Destiny reached 9.5 million registered players in its report. The publisher clarified to Engadget that "registered users" "refers to unique PlayStation Network / Xbox Live accounts, while multiple characters per account are not factored in." [Image: Activision]
EA reports 18% drop in revenue, increased projections
Electronic Arts reported $990 million in net revenue for the three-month period ending September 30, the publisher revealed in its second quarter of fiscal 2015 financial results. That represents an 18.5 percent decline from the $1.21 billion in revenue reported in the last quarter, though it's also a 42.4 percent increase year-over-year. EA also posted a net income of $3 million, a massive improvement compared to its $273 million loss reported at the same time last year. While EA's digital revenue slipped 5.2 percent from $536 million to $508 million in the past quarter, it still represents a 12.9 percent increase year-over-year. EA stated back in August that it hopes to earn $1 billion from add-on content this year, and its Ultimate Team sales in the NHL, FIFA and Madden series may continue to help with that. EA reported a 96 percent increase in revenue on a non-GAAP basis (Generally Accepted Accounting Principles) from those three series' Ultimate Team modes over the past year. The publisher also adjusted its expectations for the fiscal year (ending March 31, 2015), adding $75 million to its projections to total $4.375 billion. As for the next quarter, EA expects an increase in net revenue during the holiday season to $1.1 billion. EA also revealed the release date for its popular military shooter in the financial report: Battlefield Hardline will launch on March 17, 2015. [Image: EA]
World of Warcraft's Chinese partner sees increase in profit and revenue
Earlier this month, Blizzard claimed that a "disproportionate" amount of its 800,000 lost World of Warcraft subscribers were from the east. While that may be, China is doing quite well with the studio's games. Gamasutra reports that Blizzard's partner in the region, NetEase, posted a "modest rise" in both profit and revenue during the second quarter. The company reported revenue of $376.6M, a rise of 13% from last year. This financial summary includes NetEase's own titles along with World of Warcraft, StarCraft II, and Hearthstone. Hearthstone was singled out as a "strong earner" due to its recent launch in the region. Both Blizzard and NetEase are working to bring Diablo III and Heroes of the Storm to the country in the future.
WildStar and Guild Wars 2 boost NCsoft profits
The second quarter of 2014 was a very good time indeed for NCsoft, as the publisher announced today that revenues and profits are up thanks to WildStar's launch and Guild Wars 2's move into China. In today's earnings report, NCsoft shows that sales went up 20% and operating profit increased 46% from the previous quarter. The company said that it saw a marketing expense increase due to WildStar and that Lineage "recovered meaningfully" during this period. As for sales per game, Lineage is still at the top with 32.2%. Following that is WildStar (15.9%), Guild Wars 2 (12.6%), Blade and Soul (10.8%), Aion (10.4%), and Lineage II (7.7%).
Perfect World Entertainment posts strong Q1 2014 earnings
Perfect World Entertainment posted its earnings report for Q1 2014, showing strong financials that include an increase from the same period in 2013. In Q1 2014, the publisher made $143.3M in revenue, $105.5M in gross profit, and had an operating profit of $28.5M. Perfect World CEO Robert Xiao said he was pleased with the results, commenting that, "Our total revenues came in line with the high end of our expectations, which was slightly softer than the strong fourth quarter of 2013. In the first quarter of 2014, we decelerated promotional activities for our client-based MMORPGs and remained focused on content development of our portfolio and pipeline." Xiao focused on the expansion of the company's mobile lineup as a cause for hope for the future as well as the Chinese Dota 2 beta test and Neverwinter launch later this year.
Funcom's financials take a sharp blow
The earnings report for Funcom's fourth quarter 2013 is in -- and it doesn't look pretty. The studio reported that revenues are down both year over year and quarter over quarter due to deferred billings with The Secret World and increased competition. However, Funcom said that a better business model and new marketing programs are resulting in a stronger first quarter for 2014 and that its MMOs are "cash-flow positive and will remain so in the foreseeable future." Funcom said that it is taking steps to turn around the business with a new strategy to focus on more mid-core online games with smaller budgets and shorter development time. It's also continuing to invest in LEGO Minifigures Online and the Dreamworld technology. The latter is important so that the studio can release games across multiple platforms including Android and iOS tablets. LEGO Minifigures Online is scheduled for open beta testing this summer. The Økokrim charges regarding possible market manipulation between August 2011 and August 2012 were mentioned. Funcom said that no employees have been charged, and the company is cooperating fully with the ongoing investigation.
NCsoft boosts numbers in Q4 2013 while Nexon names new CEO
NCsoft is thanking its lucky Blade & Soul these days, as revenues from the game's popularity in China have helped to boost its financial status. In the recently released Q4 2013 earnings report, NCsoft announced that sales, operating profit, pre-tax income, and net income were up over Q3 2013. Overall, 2013 was profitable for the company as its income went up year-over-year. NCsoft credited a growing Lineage and a "strong" and "solid" Guild Wars 2 for this effort, as well as cost savings initiatives. While sales in Korea improved from 2012 to 2013, those in Japan, Europe, and North America all declined over the same time period. Lineage is by far NCsoft's biggest earner, followed by Guild Wars 2, Aion, and Blade & Soul. The company said that WildStar is on track to launch in mid-2014 and that the key GW2 focus is not on an expansion but with bringing the game to China. Meanwhile, NCsoft's biggest investor, Nexon, just named Owen Mahoney as its new president and CEO, replacing Seungwoo Choi. Nexon also announced a revenue and income increase in 2013 and acknowledged that it is underperforming in Japan and the West.
Ubisoft sees 35% drop in sales
Ubisoft reported 520 million euros ($709.5 million) in sales for the third quarter of the 2013 - 2014 fiscal year, which ended December 31, 2013. The sales represent a 35.2 percent drop year-over-year. Ubisoft reported total sales of 813 million euros ($1.1 billion) for the first nine months of the fiscal year, a 24.8 percent decrease compared to the nine-month-period earnings one year prior. Additionally, it reported a 4 percent decrease year-over-year in digital sales, which amounted to 53 million euros ($72.3 million). Ubisoft cited the "console transition period" among the reasons for the company's losses in the quarter, pointing to back-catalog sales of 53 million euros ($72.3 million), a 21 percent contraction. The publisher also saw "lower-than-expected sales" for Rocksmith 2014, but said it shipped 10 million units of Assassin's Creed 4: Black Flag. All in all, it expects approximately 1,000 million euros ($1.36 billion) in sales for the full fiscal year 2013 - 2014. [Image: Ubisoft]
Destiny to be 'best-selling new IP in history' according to Activision [update]
Activision is dreaming big for Bungie's Destiny, dubbing it the "next billion dollar franchise." Activision CEO Bobby Kotick echoed the projection, telling investors during today's earnings call that the publisher expects "Destiny will become the best-selling new video game IP in history." Destiny, an online, loot-heavy first-person shooter, is due on September 9. No pressure. Activision also reported $4.58 billion in revenue for the 2013 calendar year. The earnings represent a 5.76 percent decrease compared to that of 2012, in which the publisher earned $4.86 billion. It also reported fourth quarter earnings of $1.52 billion, a nearly 120 percent leap from its $691 million in revenue during the third quarter and well above its $1.26 billion projection. Finally, World of Warcraft had 7.8 million subscribers as of December 31, 2013, an increase from the 7.6 million reported during the last quarter. Update: As it turns out, Kotick's direct quote from the earnings statement is that Activision expects "Destiny will become the best-selling new video game IP in history," which is substantially different than being the best-selling game overall. We've updated the quote and headline accordingly. We apologize for the error. [Image: Activision]
GameStop: One third of PS Plus subscriptions sold came from PS4 launch week
One third of all PlayStation Plus subscriptions sold by GameStop in its lifetime came in the week of the PlayStation 4's launch, GameStop President Tony Bartel revealed during the retailer's third quarter earnings call. GameStop reported an 8.6 percent increase in its digital sales for the quarter, contributing to its overall 18.8 percent sales increase. Likewise, the retailer sold through its reservations and some additional allocated PS4 units during the week. Bartel said that "when you look at all of the PlayStation Plus subscriptions that we've sold in our lifetime as a company, we've been selling them for years, a full one-third of all subscriptions we've sold in our lifetime were sold in the last seven days at GameStop." The retailer began selling PSN content in its stores in November 2010, when it started offering PS Plus subscriptions and download codes for games and add-on content. GameStop pointed out during the investor call that the PlayStation Network is a big part of Sony's future, and the company plans to continue being a part of that. "We're working very closely with Sony to make sure that we partner with them and we're giving them the consumer feedback and working closely to make sure we have a great product there," Bartel said. It's unknown how much of an impact Sony's launch day deal had on subscription sales for GameStop for the week, in which players that purchased a year subscription to PlayStation Plus received $10 in PSN store credit. The deal was good through Best Buy and Newegg as well.
GameStop sells through PS4 allocation, 2.3 million people on 'first to know' list [Update]
GameStop has sold through all of its PS4 reservations and some additional allocated consoles it received from Sony, the retailer announced during its third quarter earnings call. GameStop President Tony Bartel added that the company has "over 2.3 million customers on the 'first to know' list, which indicates continued demand for months to come" for Sony's console. "Although we won't reveal the total amount of units for competitive reasons, our share was higher than on any previous console launch, and our sell-through since launch was 80 percent higher than the total amount of PS3s that we sold in our 2006 fiscal year," Bartel said. Bartel corroborated Sony Computer Entertainment of America CEO Jack Tretton's recent projection that the PS4 would sell 3 million units in North America by the end of the year, noting that GameStop expects "to sell a large portion of that." In regards to projections for Xbox One sales, which launched today, Bartel said "the value of our reservations and the additional allocation is 15 percent higher than the amount of Xbox 360s that we sold during our entire 2005 fiscal year. So we are poised for a powerful launch." Update: As a clarification, GameStop has informed Joystiq that the 2.3 million people on its 'first to know' list is for PS4 and Xbox One customers combined, not just the former.
NCsoft takes a financial hit in Q3 2013
NCsoft's latest financial earnings report shows that the publisher took a substantial hit in the third quarter of this year. Sales, operating profit, pre-tax income, and net income were all down from both the previous quarter and Q3 2012. NCsoft blamed the dip due on a shuffling of Lineage's in-game sales from third to fourth quarter. Guild Wars 2 once again dropped in sales, while Blade and Soul came out the best in the report, seeing an uptick in sales thanks to a recent content update. Higher expenses were also to blame for NCsoft's lower profit margin, including an increased WildStar marketing campaign and relocating headquarters. Quarter-over-quarter, sales were down across most of NCsoft's subsidiaries save for NCsoft Taiwan and Ntreev Soft, which both saw a bump in sales. [Thanks to Sharvis for the tip! And note, the unit on the Y axes is million South Korean won, not US dollars.]
NCsoft sales are up, income is down
NCsoft may be in a more secure position with its financials at the present, as the company released its Q2 2013 earnings report with uplifting data. Overall, the publisher and its combined subsidiaries has increased its sales by 4% over last quarter and seen a healthy bump in operating profit as well. It's not all good news; NCsoft's net income has taken a 35% nosedive quarter-over-quarter. If you strip away the subsidiaries, however, NCsoft is doing well across the board. So what's fueling these numbers? Lineage 1 remains the backbone of NCsoft's financials, boasting "an all-time high" in the sales department. Aion is reportedly doing well in China, and Guild Wars 2 is providing "stable" profits. It looks as though North American sales has decreased from Q1, but an increase in Japanese and Korean sales has more than made up for the loss.
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!]
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.
