Published in Gaming

Activision Blizzard meets Wall Street’s estimates

by on03 August 2018

But predicts trouble ahead.

Activision Blizzard topped Wall Street estimates for quarterly profit thanks to its “Call of Duty” title, but warned that the current-quarter and full-year revenue will be below expectations.

 The company is slated to release “Call of Duty: Black Ops 4” as well as “World of Warcraft: Battle for Azeroth” and “Destiny 2: Forsaken” in the second half of the year.

“Pre-orders were strong”, Activision President Collister Johnson said on a post-earnings call.

The company forecast 2018 adjusted profit of $2.58 per share and revenue of $7.48 billion, while the Street was expecting a profit of $2.60 per share and revenue of $7.52 billion.

Activision has been doing well tapping into the rising popularity of e-sports through its Overwatch league and recently signed a multi-year agreement with ESPN and Disney XD for live coverage of the league.

Chief Executive Robert Kotick said as the mainstream popularity of e-sports continues to grow, the company is well positioned to use the success of its Overwatch League model to develop new eSports opportunities in the future.

Activision said it expected third-quarter adjusted revenue of $1.62 billion and profit of 47 cents per share, below analysts’ average estimate of $1.87 billion and 66 cents per share.

The videogame publisher’s net income jumped to $402 million in the second quarter, from $243 million a year earlier.

Last modified on 03 August 2018
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