Game Purchases Boosts Q1 Results For Activision Blizzard, Inc. (NASDAQ:ATVI)

  • Game Purchases Boosts Q1 Results For Activision Blizzard, Inc. (NASDAQ:ATVI)

Game Purchases Boosts Q1 Results For Activision Blizzard, Inc. (NASDAQ:ATVI)

Activision forecast current-quarter adjusted revenue of $1.35 billion and profit of 31 cents per share, missing the analysts' average estimate of $1.49 billion and 47 cents per share.

However, Call of Duty showed popularity during the past holiday season and research firm Superdata reported Candy Crush hit a multi-year high in March, having its best month since 2014 and placing ninth for highest-grossing mobile games in March. This was an increase from $426 million or $0.56 per share which was recorded in last year's first quarter. Overall, $1.46 billion came from digital sources, with a mere $409 million coming from traditional retail outlets.

Across its subsidiaries, Activision Blizzard hit a total of 374 million monthly active users; 51 million from Activision, 38 million from Blizzard, and 285 million from Candy Crush developer King. He expects the next "Call of Duty" release, due out October 12, to have a battle royale mode. With regard to revenues this was the second-best first quarter that Call of Duty has ever had and was only eclipsed by the first quarter of 2016 after the launch of Black Ops III.

Chief Financial Officer Spencer Neumann said Activision has seen "some near-term impact" from "Fortnite".

The game is available on gaming consoles, personal computers and mobile devices. "The most notable aspect of Fortnite is its business model: the game is 100% free on consoles". Activision Publishing president Coddy Johnson added that the battle royale mode is "contributing to innovation within the industry", going on to say it is helping bring new, younger games to video games.

This presents challenges for rival video-game companies Activision Blizzard, maker of Call of Duty, and Take-Two Interactive, owner of Grand Theft Auto Online (GTA Online).

Inspired by that success, plenty of companies have tried to hop aboard the battle royale bandwagon, and in a rather teasing retort, Activision CEO Bobby Kotick implied the publisher might very well be next.

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.

"When we see people innovate in an interesting and impactful way, we are very quick to figure out how to capture inspiration from innovation".