Page 185 - 2012 Annual Report

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VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
I - 2012 FINANCIAL REPORT
SECTION 4 BUSINESS SEGMENT PERFORMANCE ANALYSIS
(a) Includes revenues from subscriptions and memberships, licensing royalties, value-added services, downloadable content, digitally distributed products
and wireless devices.
(b) Includes revenues from all World of Warcraft products, including subscriptions, boxed products, expansion packs, licensing royalties and value-added
services. It also includes revenues from Call of Duty Elite memberships.
(c) Other revenues include standalone sales of toys and accessories products from Skylanders franchise, mobile sales and other physical merchandise
and accessories.
REVENUES AND EBITA
Higher than expected, Activision Blizzard’s revenues were €3,768 million,
up 9.8% (+2.3% at constant currency) compared to 2011, and EBITA was
€1,149 million, a 13.6% increase (+6.6% at constant currency) compared
to 2011. These results take into account the accounting principles
requiring that revenues and related cost of sales associated with games
with an online component be deferred over the estimated customer
service period. The balance of the deferred operating margin was up 10%
to €1,000 million as of December 31, 2012, compared to €913 million as
of December 31, 2011.
In North America and Europe combined, Activision Blizzard was the #1
console and handheld publisher for 2012 with the #1 and #3 best-selling
franchises(1), Call of Duty and Skylanders. In November 2012, Black Ops II
became the first video game ever to cross the $1 billion mark in 15-days(2) .
As of December 31, 2012, the Skylanders franchise had generated, life-
to-date, more than $1 billion in worldwide sales(1) . In January 2013, sell-
through of Skylanders figures worldwide has exceeded 100 million(3) .
In addition, Diablo III was the #1 best-selling PC game, breaking PC-game
sales records with more than 12 million copies sold-through worldwide
through December 31, 2012, and World of Warcraft® : Mists of Pandaria®
was the #3 best-selling PC game (4). As of December 31, 2012, World of
Warcraft remains the #1 subscription-based MMORPG, with more than
9.6 million subscribers(4) .
CASH FLOW FROM OPERATIONS (CFFO)
Activision Blizzard’s cash flow from operations amounted to €1,104 million,
a €227 million increase compared to 2011. This performance reflected the
growth in EBITDA after changes in Activision Blizzard’s net working capital
(+€338 million), related to the success of the games released in the fourth
quarter of 2012.
(1) According to The NPD Group, GfK Chart-Track and Activision Blizzard internal estimates, including toys and accessories.
(2) According to Chart-Track retail customer sell-through information, internal company estimates and screenrant.com.
(3) According to Activision Blizzard internal estimates.
(4) At retail and according to The NPD Group, GfK Chart-Track and Activision Blizzard internal estimates.