The stock price of Activision Blizzard plummeted after-hours when the company released its fourth quarter and full-year 2014 financial results.
The shares of the video game maker dropped more than 6% to $20.39 per share during the extended hours trading around 4:27 in the afternoon in New York.
Activision Blizzard financial results
During the fourth quarter, Activision Blizzard generated non-GAAP earnings of $0.94 per share, up from $0.79 per share in the same period in 2013. The company reported net revenues of $2.21 billion, down from $2.27 billion in the year-ago quarter.
For the full-year 2014, Activision Blizzard delivered non-GAAP earnings of $1.42 per share, higher than $$0.94 per share recorded in 2013. The company’s net revenues were $4.81 billion compared with the $4.58 billion in the previous year.
According to Activision Blizzard, its net revenues from digital channels were $2.20 billion, which account 46% of its total net revenues.
In a statement, Bobby Kotick, CEO of Activision Blizzard said, “2014 was another successful year as we achieved record results and introduced new franchises with outstanding game play, expanded on exciting new business models and continued investing in some of the world’s most important entertainment franchises.”
He added that the company’s 2014 earnings per share were more than doubled from the previous year.
Activision Blizzard expanded its franchise portfolio
Kotick also stated that Activion Blizzard expanded its franchise portfolio nu launching two successful brands—Heartstone Heroes of Warcraft and Destiny.
According to him, the two franchises attracted more than 40 million registered players worldwide. The franchises generated more than $850 million in non-GAAP revenue.
“This year, we expect to expand our franchise portfolio to 10 blockbusters, up from five franchises at the beginning of 2014. Our amazingly talented teams will continue to produce the world’s best content for gamers,” said Kotick.
Activision Blizzard said the Call of Duty: Advance Warfare franchise was the top-selling console game worldwide this year. It was also the number franchise in North America for the six consecutive years. Its total revenues were already more than $11 billion since its launching in 2003.