q4-2013
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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.
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]
Chromecast, Google Play, Nexus 5 and Google Wallet had a very good 2013
The numbers are out, confirming that, yet again Google's rolling in the dough. And on its Q4 investors call, Google informed us that, while ads still butter its bread, other sources of income are growing in importance -- non-advertising revenue essentially doubled in 2013, with $1.65 billion coming in the last three months, not counting Motorola, of course. That increase is due partly to a strong holiday season this year, powered by sales of Nexus devices (particularly the 5) and Chromecasts, and the Play Store continuing to move more apps and games. Nikesh Arora, Google's senior VP and chief business officer, said that consumers' general shift toward mobile platforms has helped drive the Play Store's economics upward, and that in turn is driving many more folks to opt into Google Wallet. When asked how many Wallet users and credit cards Google's got, Arora played coy. "It's a number that we're happy with," but if you "take a look at the number of Android users out there," you can get a sense of the scale of the opportunity. Needless to say, it seems that Arora is feeling bullish about the prospects of both Wallet and the Play Store in 2014. Oh, and before you go thinking that Nest will aid in the Nexus hardware lineup's upward trajectory, don't. Google CFO Patrick Pichette said that the goal of the acquisition is to help Nest scale up its market reach worldwide and that Mountain View will bring its vast resources to bear to make it happen. So, don't expect to see any Nest-ified slates or phones anytime soon.
Amazon's Q4 profit more than doubles year-over-year to hit $239 million
Amazon clearly didn't have any problems generating a profit this holiday. The online retail powerhouse says that it made a tidy profit of $239 million in the fourth quarter of 2013, or more than twice as much as it managed a year earlier. That's on top of a year-over-year revenue increase, to boot -- Amazon raked in $25.59 billion during the quarter versus $21.27 billion at the tail end of 2012. The only sour note is a full-year profit of just $274 million, although that's still much better than the $39 million loss from 2012. The company hasn't said just why it did so well, although we wouldn't be surprised if the Kindle Fire HDX launch and a recently introduced Sunday delivery option played important roles.
Google finishes up 2013 on a high note, Motorola on a low one (financially speaking)
We've grown accustomed to Google making piles of money, and the fourth quarter of fiscal year 2013 continues the trend . How big's the pile this time? $16.86 billion in revenue and almost $4 billion in income for Q4. Google's own sites accounted for around two-thirds of its inbound cash overall, and its international properties continue to be strong performers, with $8.77 billion coming in from outside the US. Motorola, for its part, brought in $1.24 billion of revenue, but continued to lose Google money to the tune of $384 million -- that's over $130 million further into the red than last quarter. No wonder Big G's eager to make that a Lenovo problem. Of course, the overall picture is a rosy one, as the company's monetary performance in 2013 consistently outpaced 2012. Naturally, we'll have more to add once we've heard Google's earnings call, so stay tuned. [Image credit: Google]
Apple to announce Q4 earnings on October 28
We'll learn the exact impact the sale of the iPhone 5s and 5c will have on Apple, as the company will be announcing its fourth quarter earnings on October 28. This period covers July through September, which includes the first 10 days that the latest iPhone was on sale. Apple will hold its earnings call at 2 PM PT/ 5 PM ET. In its Q3 results in July, Apple made US$35.3 billion, turning a profit of $6.9 billion. The company sold 31.2 million iPhones, 14.6 million iPads and 3.8 million Macs in Q3.
EA revenues over $1B in fiscal Q4, down from last year
Following a weak third quarter in its fiscal 2013 calendar, EA has reported strong digital sales in the home stretch but an overall decline in revenue. The three months leading to March 31, 2013, generated $1.209 billion for EA, compared to last year's final quarter revenue of $1.368 billion. Digital sales in particular showed a 22 percent increase in cash flow to the tune of $108 million, over $88 million during the same period as last year. In the financial report, EA claimed it was the top global publisher on the iOS App store for the entirety of its fiscal 2013. As for full fiscal year performance, EA reported net revenue of $3.797 billion, down from $4.143 billion in 2012. FIFA 13 sold 14.5 million copies for EA, a 30 percent increase over last year's game, and Battlefield 3's Premium subscription service generated $120 million. SimCity has sold 1.6 million copies, with half of those sales coming via online purchases.
