Blizzard quarterly reports - please explain

[AVPaul]

Hello. I've got a question about Blizzard quarterly reports. I wanna ask, when snapshot of subs numbers really made? At the end of calendar quarter? Or at the moment, when report is released? I wanna ask this, just because I see, that Blizzard started offering some promotions in order to return/hold subscribers at the beginning of this month, like they done it 3 months ago, i.e. new RAF mound and 25% race change discount, and I wanna know, if this is elimination of consequences or attemts to fake subs numbers. What I want to say? I want to say, that there are two possible cases:

1) Subs number snapshot is done on the July 1st 0:00am. That means that Blizzard already know the results. And as they already know, that numbers are declined, they are trying to eliminate consequences of this decline. So, when report will be released to stockholders, they may say, that they have already token all measures and have full сontrol over a situation.

2) Subs number snapshot is done at the moment of report release. Then all this promotions, like SOR free race change+free transfer+free boost to 80lvl in a week prior to releasing quarterly report, has the only goal - to fake number of subs, i.e. overestimate this numbers. Why? Just because this promotions makes players open their subscribtion not because they are wanting to play the game, the game is interesing to them, they have something to do ingame, but just because this time-limited promotions are worth paying 15$ for one month sub.

So, what case is correct? Wikipedia says to me, that fiscal quarter in US ended on 1st of July. And previus quarter ended at 1st of Jan. But then why report was released on 9th of May? Why they are delaying report release for a 1,5 of month?

[mjolnir1122]

While I can't answer your exact question, I can tell you this...

There are 4 fiscal quarters in a year. Jan-march, april-june, july-september, and october-december, with the quarters ending at midnight on the first of the respective months. Blizzard, like most companies, has to gather ALL of their data to make a legal, official report. That is why they have quarterly press releases, it's after all of the numbers are crunched.

Secondly, your first possible case is not possible. They could get in alot of legal trouble for putting out false numbers. Sure, they could do it, but an internal investigation would quickly oust the truth, and Blizzard would be gone. So this theory is pretty much off the table.

Third, your second theory is a bit hard to understand, but again involves falsifying information, which on Wall Street is a huge nono.

If Blizzard practiced falsifying information, then that would mean just about every company on the stock market would be doing the same, meaning that stocks were absolutely meaningless and based on no factual information. While conspiracy theorists will ofcourse tell you that is the case, don't fall in with that. Most companies (ofcourse there are exceptions), play by the rules. They have to. If they don't, and they're found out, they get shut down, and I'm pretty sure thats a bit too much risk for multi-million and billion companies.

And before anyone says anything on this, yeah, they might be able to pay off people to keep their lips sealed, but if the public gets even a wiff of foul play, theres not much they can do after that. Even if a company that gets caught red handed and manages to stay in business, they'll find it very hard to prosper the way they were after being labeled liars, cheats, and swindlers

[Twix]

financial statements need to be audited to make sure everything is properly represented.. so that the shareholders know if the company is doing good or bad

[AVPaul]

Secondly, your first possible case is not possible. They could get in alot of legal trouble for putting out false numbers. Sure, they could do it, but an internal investigation would quickly oust the truth, and Blizzard would be gone. So this theory is pretty much off the table.

Third, your second theory is a bit hard to understand, but again involves falsifying information, which on Wall Street is a huge nono.

I haven't said, that they are falsifying information. I mean, they are not reporting 10M of subs, while they only really have 9M for example. I mean, they are "buying" +N subs for their report, by offering some promotion, which makes players to pay for their sub, even if they won't really play till MOP anyway. I'll paraphrase the question. I wanna know, why they usually start some promotions, like SOR, RAF, discounts, etc., some weeks prior to quarterly fiscal report? To "buy" some number of subs at the last moment before reporting this numbers, i.e. to "fake" this numbers, or instead - just because now "snapshot" is already done and now they are free to start any promotions without risk, that this promotions may be treated as attempts to fake subs numbers?

[Epileptica]

I haven't said, that they are falsifying information. I mean, they are not reporting 10M of subs, while they only really have 9M for example. I mean, they are "buying" +N subs for their report, by offering some promotion, which makes players to pay for their sub, even if they won't really play till MOP anyway. I'll paraphrase the question. I wanna know, why they usually start some promotions, like SOR, RAF, discounts, etc., some weeks prior to quarterly fiscal report? To "buy" some number of subs at the last moment before reporting this numbers, i.e. to "fake" this numbers, or instead - just because now "snapshot" is already done and now they are free to start any promotions without risk, that this promotions may be treated as attempts to fake subs numbers?

Budgets and results are two different things. They report what they have earned - not what they are planning on earning.

[Tokru]

Of course they plan to increase sub numbers before the report is created. They know very well in every moment how many are still playing and they also know in advance on which date the numbers are snapshotted because they do it themselves.

[Kouki]

I think its a bit of both, they are faking numbers and losing numbers really fast, and the report has shown this before.