In-Game Spending Bolsters Activision -- WSJ

By Sarah E. Needleman and Austen Hufford

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (May 4, 2018).

Activision Blizzard Inc. reported record first-quarter results Thursday, with revenue and profit rising by double-digit percentages thanks to increased in-game spending in key titles such as "Call of Duty: World War II" and "Candy Crush Saga."

While the company didn't put out any major new releases during the quarter, it said revenue grew nearly 14% to $1.97 billion from a year earlier. The company posted a profit of $500 million, or 65 cents a share, up from $426 million, or 56 cents a share, in the first quarter of 2017.

Activision Blizzard beat its own forecast for first-quarter revenue by $145 million and profit by 18 cents a share.

"Our business is strong on all fronts," Chief Executive Bobby Kotick told The Wall Street Journal.

The Call of Duty publisher raised its full-year outlook slightly and said it now expects revenue of $7.36 billion and profit of $1.79 a share.

Dow Jones Newswires, the professional business information service operated by the Journal's publisher, inadvertently published select earnings results, including an incorrect revenue number, for Activision's latest quarter ahead of their scheduled release. The company then released its full earnings report during trading hours Thursday.

Shares, which fell by as much as 6% after the early report, closed down 2.3% at $66.82.

"We regret our error as well as inadvertently breaking the embargo," Dow Jones said in a statement. "We have issued a correction and are reviewing our processes."

In its earnings report, Activision Blizzard said the launch of its "Overwatch" videogame league in January has attracted millions of viewers, boosting combined play and watch times for the cartoonish shooter. Other game makers are trying to create leagues that mirror the structure of traditional professional athletics, including Take-Two Interactive Software Inc. and Riot Games Inc.

(END) Dow Jones Newswires

May 04, 2018 02:47 ET (06:47 GMT)

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