Activision 1Q Revenue, Earnings Rise as Demand Returns for `Call of Duty'
April 26 2023 - 11:54AM
Dow Jones News
By Dean Seal
Activision Blizzard Inc. posted higher revenue and
stronger-than-expected earnings on Wednesday, hours after U.K.
regulators rejected its proposed $75 billion merger with Microsoft
Corp.
The videogame company posted a profit of $740 million, or 93
cents a share, compared with $395 million, or 50 cents a share, in
the same quarter a year ago.
Stripping out one-time items, adjusted earnings were $1.09 a
share. Analysts polled by FactSet had expected 51 cents a
share.
Quarterly revenue jumped to $2.38 billion from $1.77 billion
last year, when demand for its popular "Call of Duty" videogame
franchise was fizzling.
A year later, premium Call of Duty game sales have risen
significantly, as have in-game bookings on consoles and personal
computers, Activision said. Broad-based growth across the franchise
helped triple Activision's segment operating income from year-ago
levels, according to the company.
The results weren't able to reverse earlier stock price declines
that followed the U.K.'s antitrust watchdog ruling against
Microsoft's purchase of Activision, which complicates the
companies' efforts to obtain global approval for the deal.
Shares were down 11.2% at $77 in trading on Wednesday.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
April 26, 2023 11:39 ET (15:39 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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