Blizzard 2004 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2004 Blizzard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 73

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73

• Net revenues were positively impacted from titles selling at higher average retail prices throughout fiscal 2004 as
compared to fiscal 2003. As a result of the strong performance of our key fiscal 2004 releases, we were able to
maintain the original price points for those titles for an extended period of time.
• International net revenues benefited from the strong year-over-year strengthening of the Euro (“EUR”) and Great
British Pound (“GBP”) in relation to the U.S. dollar. We estimate that foreign exchange rates increased reported
net revenue by approximately $52.1 million. Excluding the impact of changing foreign currency rates, our interna-
tional net revenue increased 4% year-over-year.
• The increase in publishing net revenues was offset by fewer titles released in fiscal 2004 as compared to
fiscal 2003.
North America Publishing Net Revenue
(In thousands) % of % of
March 31, Consolidated March 31, Consolidated Increase/ Percent
2004 Net Revenue 2003 Net Revenue (Decrease) Change
$446,812 47% $432,261 50% $14,551 3%
Domestic publishing net revenues increased 3% from $432.3 million for the year ended March 31, 2003 to $446.8
million for the year ended March 31, 2004. The increase reflects the strong performance of our fiscal 2004 third
quarter releases of True Crime: Streets of L.A. and Tony Hawk’s Underground for the PS2, Xbox and GameCube and
Call of Duty for the PC. We continued to see strong sales of these titles through March 2004. The increase in net
revenues was offset by fewer titles released in fiscal 2004 as compared to fiscal 2003.
International Publishing Net Revenue
(In thousands) % of % of
March 31, Consolidated March 31, Consolidated Increase/ Percent
2004 Net Revenue 2003 Net Revenue (Decrease) Change
$218,920 23% $183,714 21% $35,206 19%
International publishing net revenues increased by 19% from $183.7 million for the year ended March 31, 2003 to
$218.9 million for the year ended March 31, 2004. International publishing also saw strong results from our 2004
releases of True Crime: Streets of L.A. and Tony Hawk’s Underground for the PS2, Xbox and GameCube and Call of
Duty for the PC. We also had strong results from several other titles released during fiscal 2004 including Return to
Castle Wolfenstein, X2: Wolverine’s Revenge and Jedi Knight: Jedi Academy. In addition, we had strong catalog sales from a
number of our franchises, including Spider-Man. There also was a positive strengthening of the EUR and the GBP in
relation to the U.S. dollar of approximately $22.2 million. Excluding the impact of changing foreign currency rates, our
international publishing net revenue increased 7% year-over-year. The increase in net revenues was offset by fewer titles
released in fiscal 2004 as compared to fiscal 2003.
Activision, Inc. — 2004 Annual Report
page 21