Now I would like to turn the call over to Thomas Tippl who will provide a review of Activision Blizzard’s financial results for the quarter and review our outlook for 2009. It has taken 18 years to create these competitive advantages but today we are better positioned than any of our competitors to capitalize on the long-term opportunities afforded by our industry and we will continue exploring new market opportunities and business models that should enable us to continue growing our operating margins and delivering long-term value to our shareholders as we have over the last 18 years.
And finally, our exceptional balance sheet, which is the result of our continued focus on margin expansion, operational excellence, and rigorous cost control. Our leading online capability and first mover advantage and access to fast-growing Asian markets, our industry-leading operational capability and the most talented group of employees by far in our sector. I thought it would be useful to remind you of the five key advantages that will enable us to provide superior returns to our shareholders in the future.įirst, our focus on a select number of proven franchises and genres, our strong marketing and sales programs, and our ability to find ways to broaden our franchises through innovative business models, new genres, and new markets. Today we announced that our board of directors has authorized an additional $250 million to our buy-back program to $1.25 billion, further illustrating our long-term focus and commitment to providing superior returns to our shareholders. Our cultural focus on thrift is driving further cost reductions throughout our business and our incredibly strong balance sheet has enabled us to repurchase more than $650 million worth of shares since we began our repurchase program. This gives us an exceptionally deep advantage and is the basis for our industry-leading operating margins today and provides us the ability to expand operating margins in the future. We’re not preoccupied with dramatic restructurings, burdensome investments to develop online game making capabilities, or the significant risks and expenses associated with entering new geographies like China or Korea. This flexibility to make long-term investments without compromising near-term results puts us in an enviable position. Mike will also give you more details about our progress in China later in the call. In fact, from a quality of hardware and network perspective, China is our most advanced geography in technical capability. Netease has already made significant investments in upgrading the technical infrastructure of the World of Warcraft service. This is a long-term investment with a very capable and committed partner. We continue to strengthen our position there with Blizzard Entertainment’s partnership with Netease, the premier China based videogame company. Today we have more people in more countries playing online games than any other company and we intend to continue our leadership position through franchises like Blizzard Entertainment’s World of Warcraft and Starcraft 2, as well as Activision Publishing’s Call of Duty franchise.Īnother great area of opportunity for us is China.
The title is likely to be the most anticipated groundbreaking realtime strategy game of all time and the Battlenet platform is an investment in the future of gaming and an opportunity that we are uniquely positioned to capitalize on.
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