Activision Blizzard Posts Big Rise in Revenue and Profit, Upgrades Outlook

By Sarah E. Needleman

Activision Blizzard Inc. reported significant increases in quarterly revenue and profit and raised its full-year outlook, as videogame players snapped up digital content designed to keep them hooked in between new releases.

Revenue in the third quarter rose 58% to $1.57 billion from a year ago, exceeding the company's own forecast last quarter of $1.49 billion.

Activision Blizzard, the biggest videogame company in the U.S. by market value, released few major franchise games during the quarter. Still, customers more than doubled their spending on digitally delivered content, including full games and add-ons for existing games, it said.

A new "World of Warcraft" expansion sold 3.3 million copies on its first day, prompting more players who had abandoned the aging franchise to come back than expected, the company said. It credited shortening the period in between expansion releases by about five months. The company stopped disclosing subscriber figures last year.

Net income climbed 56% to $199 million, or 26 cents a share.

Write to Sarah E. Needleman at sarah.needleman@wsj.com

(END) Dow Jones Newswires

November 03, 2016 16:39 ET (20:39 GMT)

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