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World of Warcraft is doing quite well in China, thank you very much
Earlier this month we heard the news that World of Warcraft's subscriber base took yet another substantial hit, although Blizzard was quick to say that most of these losses were coming from eastern countries like China. It's odd then that we've just received word that World of Warcraft is on the rise in China following an extremely profitable third quarter. NetEase, which operates World of Warcraft in the region, announced that its Q3 earnings were actually up over the same time last year. Both revenues and profits for WoW in China are on the upswing, marking a 39.8% increase year-over-year. NetEase said that it pulled in $308.3 million in revenues, out of which $128.2 million is pure profit. Subscriber hit or no, WoW continues to be a major force in the Asian market, and with numbers like these it's hard to imagine it going away any time soon.
Dell reports Q3 earnings, enterprise division rakes in record $4.7 billion
Dell's PC business may be on the decline, in fact its consumer division saw revenues drop 6 percent, but its business business is making up for it. The company's enterprise solutions and services unit took in a record $4.7 billion in revenue this quarter, a jump of 8 percent over the same time last year. The same department also saw operating income climb 12 percent in the same period. All told, Dell took in $15.4 billion in the third quarter, which is about the same as a year or go -- give or take a few million bucks. However profits were up 12 percent over last year to $983 million. So while there doesn't seem to be a huge influx of new cash coming in, it does appear that Dell is managing what it has just fine. Check out the full report after the break.
Gartner's Q3 2011 smartphone figures: Samsung on top globally, Android tops 50 percent share
Yahtzee! Now that Canalys, IDC and Strategy Analytics have had their turn, it's Gartner's go to serve up its summary of the smartphone world as seen in Q3 2011. Perhaps unsurprisingly, the headlines aren't changing much, with Samsung becoming the number one smartphone manufacturer worldwide with sales reaching 24 million, and Android's quarterly market share inching over 50 percent to best iOS, BlackBerry OS, etc. We also (re)learned that Apple shipped 17 million iPhones in the quarter, which represents an annual uptick of 21 percent, but a 3 percent drop from Q2 2011 due to the looming iPhone 4S release; predictably, Gartner's predicting that Apple's Q4 2011 will be its strongest yet with the 4S on the market. Breaking the operating system share a bit, we found that Symbian is (strangely) still being included, and that Android managed to soar from 25.3 percent in Q3 2010 to 52.5 percent today. iOS actually lost a bit of ground (16.6 percent a year ago compared to 15 percent today), but in fairness, so did BlackBerry OS and Bada. Curious about Microsoft? It's claiming just 1.5 percent of the worldwide pie, a fairly precipitous drop from the 2.7 percent it had a year ago. Far more fun facts and figures await you after the break.
Activision Blizzard loses 1.1 million WoW players since May, triples profits
Today's investor call with Activision Blizzard was a rollercoaster of news for MMO fans, with both good and bad news coming forth. Starting with the bad -- everyone asks to start with the bad news, don't they? -- World of Warcraft's subscriber numbers are much lower than they were this past May. The company reports that subscriptions have dropped from 11.4 million in May to 11.1 million in June to 10.3 million, representing a loss of 10% of the playerbase. These numbers represent the total worldwide, and Blizzard CEO Mike Morhaime said that most of the losses were suffered in the eastern market. No matter where the losses come from, this continues the downward trend of the title during the past year. Blizzard declined to provide a subscriber forecast for the next quarter. The good news is that the company has whooped expectations by nearly tripling its profit for the quarter over this time last year. During this past quarter, Activision Blizzard raked in $627 million worth of sales, of which $148 million is pure profit. A majority of the revenue -- 62% -- comes from its digital sales. The company expects 2012 to be even better, with titles like Diablo III and another Call of Duty in the works. CEO Bobby Kotick is nothing if not confident in the company's future: "I believe our unyielding commitment to excellence and our creative talent around the globe will continue to position Activision Blizzard as the leader in interactive entertainment."
Activision reports record digital revenue, raises 2011 financial outlook
Activision has reported its financial results for its fiscal third quarter, ended September 30. The company posted revenues of $754 million, up from $745 million during the same period last year and, more importantly, over $100 million more than its original outlook of $650 million. Net income came in at $148 million, a hefty increase over the $51 million brought in during the same period last year. The company brought in a record $427 million in revenues from digital channels, accounting for 57 percent of total revenue. The results also make note of Call of Duty: Black Ops, which Activision cites as "the #1 best-selling title in dollars in aggregate across all platforms in the U.S. and Europe for each of the first three quarters of 2011." On the back Call of Duty: Modern Warfare 3 and the "stronger than expected consumer response" to the toy-driven Skylanders: Spyro's Adventure, the company is raising its revenue outlook for the rest of the year from $4.18 billion to $4.33 billion.
Zynga reports record quarterly revenue, profits still down year-over-year
Never underestimate the addictive power of microtransaction infused farms, apparently, as Zynga has disclosed a record quarter for the period between July 1 and September 30: Over $306 million, an 80 percent increase in revenue over that same period in 2010. The social megalith attributes the increase in revenue to the successful launches of Adventure World and the Facebook version of Words with Friends, which took place during this quarter. Revenue is a very different beast than profit, however, where Zynga continues to decline. Following a 95 percent year-over-year profit decrease in Q2, the SEC filing shows a 54 percent decrease year-over-year in Q3 after a total of $12.5 million in net profits. Hey Zynga, want a tip? It's on the house: Monetize letter tiles in Words with Friends. We'll pay you fifteen dollars to get rid of "MXLCZDL."
Cablevision reports Q3 earnings, sees profit fall by 65 percent, drop in video subscribers
It's safe to say that Q3 2011 probably won't be remembered as Cablevision's finest. According to the provider's latest earnings report, profits declined by a full 65 percent over the year, with net income plunging to $39.3 million this quarter, compared with the $112.1 million it raked in during the third quarter of 2010. The company also reported a loss of 19,000 video subscribers during Q3, though it added 17,000 broadband customers and 38,000 telephone subscribers. Total customers, however, declined by 15,000 over the past three months. Revenue, meanwhile, increased by eight percent to $1.7 billion, though the New York-area operator lost about $16 million to Hurricane Irene -- not to mention all those legal fees. Smell that? That's a big platter of PR, sitting right there after the break.
Hon Hai sees profit fall nine percent in Q3, pins hopes on new Chinese factories
Hon Hai Precision Holdings has just released its Q3 earnings report, and it probably did so with a whimper. That's because net profits fell to NT$19.2 billion (about $614 million) this quarter, marking an 8.6 percent decline from Q3 2010, when Hon Hai (aka Foxconn) reported a net income of NT$21 billion (around $702 million). The company blamed the decline on a slow economic recovery and its ongoing expansion in China, where new factories are being constructed across inland areas like Chengdu, Wuhan and Zhengzhou. These costs are still taking a toll on Hon Hai's bottom line, though analysts say the expansion could pay off in the long-run, thanks to the lower wages that Hon Hai will have to pay to maintain operations in these less affluent regions. Some are also hopeful that the iPhone 4S will help spur production heading into Q4 of this year, though its ultimate effect, of course, remains to be seen. Hit up the links below for more details and analysis.
HTC releases Q3 earnings report: profit up 68 percent, shipments soar 93 percent
It's been another stellar quarter for the folks over at HTC. According to the company's Q3 earnings report, released today, net income rose to NT$18.68 billion (about $624.6 million) this quarter -- a 68 percent increase over Q3 2010 and a seven percent bump over last quarter, when HTC reported record profits. Revenue, meanwhile, rose by 79 percent on the year to NT$135.8 billion (around $4.54 billion), which the manufacturer attributed to "strong brand recognition, leading product portfolio and expanded distribution channels." On a regional level, HTC saw the strongest growth in China, where sales increased by a factor of nine over the past year. This undoubtedly helped the company boost handset shipments, which increased by a whopping 93 percent over the year, to 13.2 million units. For more details and crunchy numbers, hit up the source links, below.
IDC: Samsung, ZTE see jump in mobile shipments, Apple slides to fifth place
Q3 earnings reports have been pouring in over the past few days, which means it's time to check in with IDC on the state of the mobile market. The research firm's latest report, released today, is something of a mixed bag. On the one hand, Q3 global shipments increased by 12.8 percent year-over-year -- higher than the 9.3 percent that IDC had predicted for the quarter and the 9.8 percent growth observed last quarter. At the same time, however, the market grew at the second slowest pace in two years and shipments to Western Europe and the US actually declined over the year, something the company attributes to more restrained consumer spending and more widespread economic uncertainty. On the company level, both Samsung and ZTE came away as the biggest winners this quarter; Sammy's shipments increased by 23 percent over the year, good for second place, while ZTE's shot up by a whopping 57.9 percent, launching the company into fourth place. Apple, meanwhile, saw 26.2 percent growth in its shipments and a slight bump in market share, but still couldn't avoid getting leapfrogged by ZTE and dropping down to fifth place. And then there's LG, which had by far the worst quarter, relative to Q3 2010. The manufacturer saw shipments decline by nearly 26 percent over the year, while its market share slipped to 5.4 percent. All these horses, however, are still chasing Nokia, which saw a small drop in shipments, but managed to hang on to the top spot, with over 106 million shipments during the quarter -- good for 27 percent of the market. For more numbers and insight, check out the full PR after the break.
Samsung's Q3 2011 overall profit falls despite incredible phone sales
Ready for more dollars and cents earnings news? It's Samsung's turn, and when it comes to phones the news couldn't be better, where it notched an operating profit of $2.3 billion on record sales. Unfortunately, other parts of its massive business selling displays, memory chips, appliances, and more weren't as profitable, leading a quarterly profit of $3.8 billion, down 13% from the same period last year. We'll wait for a press release in English for more details, for now you can paw through bar graphs and figures in the accompanying slides. Update: Now with English language press release included after the break.
AMD reports $1.69 billion in revenue for Q3, net income of $97 million
Things were starting to look pretty bleak in Q2 for AMD, but Q3 is an entirely different story. The company reported a revenue of $1.69 billion, up 7-percent from last quarter. More importantly, net income climbed to $97 million, up from just $61 million in Q2 and a far cry from the $118 million loss posted this time last year. Even the graphics division had good news to share. After the former ATI ran at an operating loss of $7 million last quarter, it netted $12 million in operating income in Q2. We wouldn't exactly call this the second coming of the CPU underdog, but it certainly should make fans and investors sleep a little better at night. Check out the complete PR after the break.
Redbox's $1 per night DVD rentals jump to $1.20 October 31st, Blu-ray and games stay the same
While its movie rental rivals Netflix and Blockbuster have struggled for varying reasons recently, it seemed like Redbox could be just the ticket for thrifty renters. That may be tougher now that it has announced Monday we'll see a slight increase in pricing for DVD rentals, from $1 to $1.20, citing increased debit card fees. So far, nightly pricing for Blu-ray discs ($1.50) and videogames ($2) is staying the same, but with studios already pushing for longer rental delays, there's fewer safe ports or those pursuing cheap, current movies. On the conference call, executives floated the idea of using the first sale doctrine to buy and rent retail discs if necessary. Overall, as seen above Redbox's share of the disc rental market rose last quarter, while there's still no word on plans to jump into online streaming. Check below for parent company Coinstar's full Q3 earnings report plus a FAQ that helpfully points out this is Redbox's first increase in eight years and that discs reserved online will still be just $1 for the first night through November. The actual email customers are receiving is included after the break. [Thanks to everyone who sent this in]
Nintendo posts first half loss in earnings report, slashes forecast yet again
Nintendo's latest earnings report may be one of its most forgettable. The company posted a net loss of ¥70.27 billion ($923 million) this morning, in a report covering the first six months of the fiscal year ending on September 30th. That's significantly deeper than the ¥2.01 billion loss Nintendo posted during the same period last year, though Nintendo attributed the result, in part, to a strengthened yen and sagging demand for its 3DS console. Revenue, meanwhile, fell by 40.6 percent on the year, to ¥215.74 billion ($2.84 billion), as the manufacturer reported an operating loss of ¥57.34 billion. Things are looking so bleak, in fact, that Nintendo has decided to slash its financial projections yet again, predicting a net loss of ¥20 billion for the full year (ending in March 2012), compared with the ¥20 billion in profits it projected only in July. And, as Bloomberg notes, if these prognostications hold true, it would mark Nintendo's first annual loss in a full 30 years. Ouch. Check out the full report for yourself at the source link, below.
Sprint announces Q3 earnings: net subs reach five year high, net losses at $300 million
Sprint has just unveiled its Q3 earnings report, and it's looking pretty bittersweet. According to the company, net operating revenues reached $8.3 billion during the quarter (about two percent higher than Q3 2010), while additions of new wireless net subscribers reached a five year high, with 1.3 million customers hopping onboard. Of those 1.3 million, 304,000 were of the postpaid variety, 485,000 were prepaid and about 835,000 were wholesale. Sprint lost about 44,000 net postpaid customers this quarter, but that's a major improvement over last quarter, when a little over 100,000 jumped ship, and marks a 59 percent improvement over last year's report. At the same time, however, the carrier reported net losses of $301 million -- lower than Q2's figures, but not exactly encouraging, either. As far as the future goes, the folks at Overland Park expect to end the year with even more new subscribers, though it remains to be seen whether that long-awaited LTE rollout can make much of a dent in its bottom line. Check out the press release in full, after the break. Update: Listening in on the earnings call it's clear Sprint is really counting on the iPhone to help it run with the big dogs. According to some convoluted metaphor, the carrier is the Oakland A's in Moneyball and Apple's handset is A-Rod (who never spent a day with the Athletics... but we digress). Still, Sprint expects more loyalty and bigger profits from customers who choose the iPhone -- at least for the next four years, after which it'll have to negotiate a new deal with the Cupertino crew. Update 2: Sprint also clarified that, in addition to its deal with LightSquared, it will be working with Clearwire to deliver LTE network coverage. The carrier has reached a preliminary agreement with its WiMAX partner, but expects to announce a wholesale deal soon. Update 3: We already knew that the iPhone 4S launch was the company's best launch ever for a family, but now the company's confirming that it was its best launch ever for any device.
LG posts a net loss for Q3, loses ground in mobile sales
The Q3 numbers for LG are in, showing its cellphone unit lost money for the sixth straight quarter, with profits coming from the home appliance and air conditioning units. On the home entertainment side, it shipped more flat panel TVs than ever before (6.8 million) and despite lower revenues managed to improve operating profit by selling more of its high end Cinema 3D and LED-lit HDTVs. Unfortunately for the mobile division, sales were down 8.5 percent from last year and the company recorded a $128.47 million operating loss. Making things worse, Reuters reports its rival Samsung is expected to report strong profit in mobiles on Friday, and pass Apple as the world's biggest smartphone seller on the back of its Galaxy S line. We don't know if LG will be able to turn things around anytime soon, but giving the Optimus LTE an Ice Cream Sandwich finish and shipping it sooner rather than later couldn't hurt.
Amazon focusing on 'lifetime' Kindle revenue, anticipating record device sales for Q4
Today's Amazon earnings were decidedly split -- the company revealed both a 44-percent increase in net sales and a 73-percent decrease in net income. So, why the discrepancy? It may at least partially be due to the much discussed suggestion that the company actually loses money for each Kindle sold -- a trend which, if true, has likely only been compounded by the release of the uber-cheap ad-supported version of the device. The company addressed the matter in part, suggesting that it is focused on "the lifetime value [of the Kindle], not just the economics of the devices and accessories." The total economic picture of the Kindle includes the device itself, accessories, downloaded content and ad-revenue. Things are apparently looking up for the company, as well, with Amazon anticipating "a record quarter in terms of device sales" for Q4. The positivity is a reflection, in part, of greater than anticipated Kindle pre-orders. Says CEO Jeff Bezos, "In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we're seeing with Kindle Fire pre-orders, we're increasing capacity and building millions more than we'd already planned."
Amazon net sales up, net income down for Q3 2011
Amazon pulled back the financial curtain for Q3 2011, revealing $10.88 billion in net sales for the quarter, a 44 percent jump over this time last year. Net income, on the other hand, decreased 73 percent year over year, down to $63 million. The quarter also saw the company's "biggest order day ever for Kindle," according to CEO Jeff Bezos -- September 28th, the introduction of three new reader devices from the company. The company's Q4 report will likely be affected by the coming launch of the Kindle Touch and the long-awaited Fire tablet.
Netflix US subscriber count drops by 800k in Q3, 21.45 million still streaming
After a tumultuous third quarter the numbers are finally in for Netflix, and as expected its price hike and Qwikster madness have cost it a few customers in the US. Currently the company is reporting a total of 23.79 million customers in the US, down from 24.59 million last quarter -- fewer than even it projected a few weeks ago. According to the report, it lost more "long term" customers than expected, which it attributes, again, to its poor explanation of the reasoning behind the change. To address those decisions and its inability to reach a new deal with Starz it has a few more numbers to show, as apparently only 7 percent of new customers are opting for the $15.98 hybrid package, while Starz Play content currently accounts for about six percent of streaming hours. Other competitors are also mentioned -- Amazon Prime Instant Video's content library is referred to as "duplicative" and just a "small fraction" of what Netflix offers, as it counts on newly-signed exclusive deals to widen the gap. Those deals mean new movies like Drive, Paranormal Activity 3, The Rum Diaries and The Immortals will show up on Netflix in the usual pay-TV window, on top of a library of catalog TV shows that pulls from all five broadcast networks and 95 percent of cable TV stations. Internationally, Netflix is up to one million customers in Canada where it plans to double quarterly content spending, while Latin American customers can look forward to iOS and Xbox support soon. While its UK launch is on for Q1, it expressed concern for competition from Sky Movies, BBC and Lovefilm, and it plans to hold off on further expansion after that. We'll dig through the report more and tune in to their earnings call in a bit, hit the source link to check out the PDF for yourself.
Nokia Q3 2011 earnings: operating profit sinks 60 percent, but sales beat estimates
Man, can Nokia World get here any faster? Nokia needs Windows Phone in perhaps the worst possible way, and if you had any doubt whatsoever on that, just take a look at the outfit's woeful Q3 2011 earnings. Right off the top, net sales dropped 13 percent year-over-year (and three percent from Q2), while operating profit plummeted a staggering 60 percent year-over-year (and 36 percent since the prior quarter). All told, the company recorded net sales of €9 billion ($12.35 billion), and while things are gloomy in comparison to the glory days, it still has a whopping €5.1 billion ($7 billion) in its coffers. And the good news doesn't end there. The company's shares actually surged on word that the losses weren't as bad as anticipated, and that overall sales beat estimates. Only in a stock market can the loss of €68 million ($93 million) be "positive," but hey -- we're sure Nokia will take all the silver linings it can find. Of course, things should be on the up-and-up after a spate of WP7-based Nokia devices are revealed later this month in London, but it still remains to be seen how soon the company can ship, and if it can penetrate a smartphone market that's gaining iOS and Android loyalists by the truckload each day. Hit the links below for more percentages than the average simpleton can shake a stick at.
