Activision Raises Forecasts On Guitar Hero Sales

Officials from Activision have raised the company’s third quarter and fiscal 2008 earnings and revenue predictions thanks to strong sales of Guitar Hero III: Legends of Rock and Call Of Duty 4: Modern Warfare. The publisher is now expecting third quarter profits of $0.66 per share on revenue of $1.225 billion, up from previous forecasts of $0.51 per share and revenues of $1.050 billion. Full year forecasts have been raised from $2.07 billion to $2.30 billion. The rise in forecasts has been attributed to better than expected sales of the company’s recent line-up of titles, with Activision becoming the number one U.S. console and handheld publisher in October, increasing its U.S. market share to a record 28.7 percent – according to quoted NPD Group data. Robert Kotick, chairman and CEO commented, "We are well on our way to delivering our 16th consecutive year of revenue growth and the most profitable year in our history. We are confident that the third quarter of fiscal 2008 will be the largest and most profitable quarter ever." "As an organization we continue to exceed our growth goals. This year, we expect that we will generate operating margins in our peak cycle target range, which is about two to three years ahead of plan. We continue to strengthen and grow our franchise portfolio and internal development resources with new brands like Guitar Hero and Transformers and the acquisition of Bizarre Creations.”