Officials from Activision have announced the company’s results for the third quarter, which show a 74% rise in net profits year-on-year. Net profits for the period were $77 million, or $0.70 per share on revenues of $508.5 million. This compares favorably to the company’s estimates of revenue of $480 million on earnings of $0.67 per share.
This success has been primarily due to better than expected performances for Tony Hawk’s Underground
and True Crime: Streets of L.A.
As a result the company has raised its full year estimates to $0.72 per share on revenues of $910 million – up from $0.56 per share on $870 million.
The company has also predicted that it will break the $1 billion revenue barrier in 2005 with expected profits of $0.90 per share for the full year.
This year the company has planned eleven titles, which CEO Bobby Kotick has indicated will almost all be sequels and movie tie-ins, commenting that, “Our strategy as the cycle matures is to go toward more mass appeal properties, aligning our intellectual property portfolio with those who are buying games, and working with titles that have a good history.”