Activision Blizzard Results Get Boost From In-Game Spending
May 03 2018 - 6:17PM
Dow Jones News
By Sarah E. Needleman and Austen Hufford
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 03, 2018 18:02 ET (22:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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