Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Net Revenues

Other costs

Industry Perspective

How did we come to exist?

Income Statement

  • Started in 1970s with Computer Space

  • First Video Game company - Atari

  • $99.6 billion in revenue by 2016
  • Product Sales
  • Revenue recognition
  • Decreased by $339M from 2014 to 2015
  • Subscription, licensing and other revenues
  • Revenue recognition
  • Increased by $595M from 2014 to 2015

Introduction

  • Product development: Increased by $75M

  • Sales and marketing: Increased by $22M

  • General and administrative: Decreased by $37M
  • Mergers & Acquisitions for Growth:
  • King acquisition
  • Mobile gaming champion
  • Candy Crush saga
  • Major League Gaming (MLG)
  • Competitive gaming

Who is Activision Blizzard?

Total Costs of Sales

  • Merger between Activision and Vivendi (Blizzard Entertainment) in 2008
  • Activision
  • First independent developer
  • Blizzard Entertainment
  • MMORPGs - massively multiplayer online role playing game
  • Managment:
  • Robert A. Kotick, CEO, joined 2008
  • Dennis Durkin - CFO, joined in 2012
  • Thomas Tippl - Former cfo, 2008 - 2012

Who are Our Competitors?

Income Trends

  • Major Competitors
  • Riot Games
  • NCsoft
  • Square Enix
  • Electronic Arts DICE
  • Total cost of sales: Increased by $60M from 2014 to 2015

  • Product costs

  • Software royalties and amortization

What do we do?

  • Video game development on major platforms
  • Call of Duty
  • World of Warcraft
  • Original film

Looking to the future

King Acquisition

Cash/cash in escrow

Software Development &

Intellectual Property Licenses

  • Transaction Agreement terms
  • $3.6 Billion to be held

  • Subsequent Event

  • Time-line
  • Nov. 2, 2015 - Entered into transaction Agreement
  • Feb. 23, 2016 - completed acquisition

  • Highly-complimentary mobile business
  • Candy Crush
  • Bubble witch
  • farm heroes
  • pet rescue

Assets

  • all money market funds and highly liquid investments

  • Decrease of $3,025M

  • Cash held by foreign subsidiaries
  • 2014: $3.6B
  • 2015: $0.5B
  • gaming development costs
  • Software development costs
  • Intellectual property licenses
  • Ex. call of duty Theme song

  • Accounting for software costs under
  • FAS No. 86

  • Current assets:
  • Software development: Decrease of $116M
  • I p licenses: increase of $25M
  • Long-term assets:
  • Software development: Increase of $ 60M
  • I p licenses: decrease of $18M

Projects in the Pipeline

  • Increase in these assets = working on new game releases

  • Decrease in these assets = Games are released
  • assets amortization

  • 2014: Product development year
  • 2015: major release year

Forecast

  • Mobile Gaming
  • King Acquisition
  • Pokemon Go

  • Interactive MMo industry
  • Existing games

  • Online/mobile subscription sales

Balance Sheet

Intangible Assets

  • Intangible Assets, net - definite assets subject to amortization

  • Trademark/trade names - indefinite assets
  • Goodwill - indefinite asset
  • multiple mergers/acquisitions
  • Increase of $9M due to Major League Gaming
  • King acquisition in 2016

Accounts Payable

recap: Fiscal year 2015

Retained Earnings

Liabilities & Equity

  • $41M Decrease

  • Short-term account

  • Incurring costs leading up to major releases.

  • $722M Increase

  • Continual Net Income growth

  • Flexibility
  • revenues - upward trend

  • Growth strategy:
  • King Acquisition

  • Operational Strategy:
  • Mobile gaming

Deferred Revenues

?

Accumulated other comprehensive loss

  • $95M Decrease

  • Revenue not earned yet:
  • Destiny
  • World of Warcraft
  • Diablo
  • Value Added Services

  • Consumable Virtual Goods
  • Durable Virtual Goods
  • $330M Decrease

  • Foreign Exchange discrepancies
  • Average Exchange Rate (2015)

vs.

  • Exchange Rate on Dec. 31, 2015
Learn more about creating dynamic, engaging presentations with Prezi