From Multimedia Wire: 10/23/98
Despite Loss, Activision Bullish On Disney, Marvel, Star Trek Deals
Activision dipped into the red after a lean Q2, but with
several potentially lucrative licensing deals in the bag Senior VP of
Corporate Development John Baker tells MMWire he has a "very high
level of confidence" in the company's prospects going into Q4 and
fiscal 2000.
The company posted a net loss of $2.2m, or 10 cents/share, on
revenues of $66.2m, for Q2 ended Sept. 30. That compares to a net
income of $1.8m, or 8 cents/share, on revenues of $53.0m, for the same
period last year.
Activision expects to generate $75-90m in revenues in fiscal 2000
from its exclusive partnership with Disney [DIS]. Six titles are
slated for release next fiscal year: Toy Story II, A Bugs Life and
Tarzan, plus three titles based on "classic" properties, including The
Lion King. Baker yesterday offered the intriguing prospect of a
Disney-based Dreamcast title. With sequel rights and the license to
develop Disney titles on PC, PlayStation, N64, Gameboy and Dreamcast,
"We believe we will be in the Disney business in a big way for many
years to come," Baker told analysts yesterday.
Baker also shed light on a four-title licensing agreement with
Marvel Comics, concluded in Aug., to publish PSX and N64 Spider Man
and X-Men titles during fiscal 2000. Activision expects to pull in
revenues of more than $40m from the products. The deal builds on an
agreement inked by the parties in May, for Activision to develop an X-
Men PSX title.
And Activision's 10-year exclusive "Star Trek" deal with
Paramount should generate revenues of $40-50m annually
"within two or three years," Baker said. The first three titles,
including an RTS, are expected next year, he told MMWire yesterday.
|
