Published in Gaming

Activision Blizzard beats Wall Street expectations

by on05 February 2021

Levels up

Activision Blizzard forecast full-year adjusted revenue above analysts’ estimates thanks to strong demand for the latest chapter in its “Call of Duty” franchise from gamers staying at home during the COVID-19 pandemic.

The company expects full-year adjusted sales to be $8.45 billion, above Wall Street’s average estimate of $8.31 billion.

Shares of the company were up nearly five percent in extended trading.

The company seemed to get a boost from the COVID-19 pandemic, which has forced people to remain indoors, leading to a surge in demand from stay-at-home gamers.

In the United States alone, videogame sales jumped 25 per cent year-over-year to $7.7 billion in December and Activision’s “Call of Duty: Black Ops Cold War” was the bestseller across all platforms in 2020, according to data from research firm NPD.

Activision said 2020 marked a record year for its “Call of Duty” franchise, which drew more than 100 million monthly active players across all gaming platforms.

The company also forecast first quarter adjusted revenue to be $1.75 billion, above analysts’ average estimate of $1.67 billion.

Activision’s adjusted revenue for the quarter ending in December was $3.05 billion, above estimates of $2.83 billion.

Fourth quarter net income fell to $508 million from $525 million a year earlier.

Last modified on 08 February 2021
Rate this item
(0 votes)