Blizzard 2009 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2009 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 105

  • 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
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

14
ResultsofOperations—YearsEndedDecember31,2009,2008,and2007
NetRevenuesbyGeographicArea
Thefollowingtabledetailsourconsolidatednetrevenuesbygeographicareafortheyearsended
December31,2009,2008,and2007(amountsinmillions):
FortheyearsendedDecember31,
2009
2007
Increase/
(decrease)
2009v2008
Increase/
(decrease)
2008v2007
Geographicareanetrevenues:
NorthAmerica................................................................
$2,217
$620
$723
$874
Europe..............................................................................
1,798
555
510
733
AsiaPacific.......................................................................
263
164
36
63
Totalgeographicareanetrevenues......................................
4,278
1,339
1,269
1,670
Other.....................................................................................
1
10
(16)
7
Consolidatednetrevenues....................................................
$4,279
$1,349
$1,253
$1,677
ConsolidatednetrevenuesincreasedinallregionsfortheyearendedDecember31,2009as
comparedto2008primarilyduetothepostBusinessCombinationnetrevenuesconsistingof$690million
inNorthAmerica,$507millioninEuropeand$54millioninAsiaPacificfromthebusinessespreviously
operatedbyActivision,Inc.forthesixmonthperiodendedJune30,2009thatwereincludedin2009but
notin2008.TheincreaseinNorthAmerica,whichwasfurtherdrivenbythestrongperformanceofthe
CallofDutyfranchise,inparticularthe2009releaseofCallofDuty:ModernWarfare2.Theincreasewas
partiallyoffsetbytheimpactoftheweakercasualgamesandmusicgenrein2009.
Geographically,consolidatednetrevenuesincreasedinallregionsfortheyearended
December31,2008ascomparedto2007asaresultofthefollowing:
• TheconsummationoftheBusinessCombination,whichresultedinconsolidatednetrevenues
fromActivision,Inc.ofapproximately$1,648million,ofwhich$227millionrelatestoour
Distributionsegment,beingincludedfromthedateoftheBusinessCombination,butnotin
2007;
• Activisionhadtwoofthetopfivebestsellingfranchisesacrossallplatforms—GuitarHero
andCallofDutyinNorthAmericaandEuropeforthequarterendingDecember31,2008
accordingtoTheNPDGroup,Gfk,andCharttrack;
• Activision’ssuccessfulreleasesin2008,includingCallofDuty:WorldatWar,GuitarHero
WorldTour,GuitarHero:Aerosmith,andGuitarHero:OnTour;
• BackcatalogsalesofGuitarHeroIII:LegendsofRock,andCallofDuty:ModernWarfare;
• ThereleaseofthesecondexpansionpackofWorldofWarcraft:WrathoftheLichKingin
November2008;
• Activision’sreleaseofanaffiliatedLucasArts’title,StarWars:TheForceUnleashedin
EuropeandAsiaPacific;and
• AnincreaseinthenumberofWorldofWarcraftsubscribers.