Activision Blizzard's $1.11B Q1 bolstered by Diablo, Hearthstone and Warcraft

Activision Blizzard reported net revenues of $1.11 billion for the first quarter of its 2014 fiscal year, driven by the success of World of Warcraft, Diablo 3: Reaper of Souls and the recently-released free-to-play card battler Hearthstone: Heroes of Warcraft, the company announced today.

This is higher than the initial financial outlook of $885 million shared in Activision's February earnings report, but a slight drop from its $1.32 billion earnings during the same period for 2013. Net revenue from digital platforms accounted for 34 percent of this number. 

The report also notes that in North America and Europe combined, Skylanders: Swap Force and Call of Duty: Ghosts were the number one and two best-selling titles for the first quarter of 2014, with Swap Force also the number one-selling children's game for the quarter in terms of sales dollars. Additionally, the number one PC title in terms of dollars was Diablo 3: Reaper of Souls.

The report also states that World of Warcraft is the best-selling subscription-based MMORPG currently on the market, with approximately 7.6 million subscribers. This number is down 200,000 subscribers since last quarter and down 700,000 subscribers year-over-year.

In the report, CEO Bobby Kotick cited the above titles for the first quarter's successing, noting that continued sales of Skylanders and Call of Duty titles also contributed to the better-than-expected results. Additionally, based on its first quarter results, Activision is raising its financial outlook for the fiscal year to $4.22 billion in net revenue.

"We have a strong product pipeline for the balance of the year, beginning with the Sept. 9 planned launch of Destiny, which we believe could become our next billion dollar franchise and the largest new videogame IP launch in history," Kotick said in a statement.

The company has several other major titles releasing this year, including Skylanders: Trap Team on Oct. 5, Call of Duty: Advanced Warfare on Nov. 4, and the World of Warcraft: Warlords of Draenor expansion sometime before Dec. 20, 2014. Additional content for Hearthstone: Heroes of Warcraft and Diablo 3: Ultimate Evil Edition for consoles are also slated to launch later this year.

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