Categories Earnings, Leisure & Entertainment
Activision Blizzard (ATVI) Q3 earnings decline but exceed expectations; stock drops
Revenues of Activision Blizzard, Inc. (NASDAQ: ATVI) declined in the third quarter as the Video game publisher continues to witness weakness in bookings. Consequently, adjusted earnings dropped but topped Wall Street’s prediction. The stock slipped about 2% on Thursday evening, following the announcement.
In the September-quarter, revenues dropped 15% annually to $1.28 billion but came in above the market’s prediction. Dragging the top-line, bookings, a key performance indicator, declined 27% to $1.21 billion. Net bookings from digital channels plunged 32% to $0.98 billion. Overall, the company had 316 million monthly active users at the end of the quarter, up 8%.
Earnings Dip
At $0.38 per share, adjusted net earnings were down 10% from last year but above the estimates. Unadjusted net income declined to $204 million or $0.26 per share from $260 million or $0.34 per share last year.
Mixed Response
The initial response to the recently released expansion of World of Warcraft and sequels to the Diablo and Overwatch franchises have been mixed. Meanwhile, Call of Duty: Modern Warfare from Activision and its mobile version fared quite well, which is expected to benefit the fourth-quarter results.
Related: Activision Q2 2019 Earnings Conference Call Transcript
“Recent launches have enabled significant growth in the size of our audiences for our Call of Duty® and World of Warcraft® franchises. As we introduce mobile and free-to-play games based on our franchises we believe we can increase audience size, engagement and monetization across our wholly owned franchises,” said CEO Bobby Kotick.
Esports Bet
Of late, esports has been a key revenue driver for Activision, which is expected to continue in the coming quarters. Recently, the company had come under fire after it banned an esports player for links to the ongoing protests in Hong Kong.
Shares of Activision gained 19% so far this year. The stock closed Thursday’s regular session sharply lower and continued to lose during the after-hours, following the announcement.
Most Popular
Costco (COST) reports strong growth in Q1 FY26 earnings; revenue up 8%
Costco Wholesale Corporation (NASDAQ: COST) has reported an increase in net income for the first quarter of fiscal 2026. Revenues grew 8.3% year-over-year. The Issaquah, Washington-headquartered warehouse giant’s total revenues
AVGO Earnings: Broadcom reports higher Q4 FY25 revenue, profit; results beat
Semiconductor company Broadcom, Inc. (NASDAQ: AVGO) on Thursday reported an increase in revenue and adjusted earnings for the fourth quarter of fiscal 2025. The numbers also surpassed analysts' expectations. Adjusted
Lamb Weston (LW) is set to report Q2 2026 earnings next week, here’s what to look for
Shares of Lamb Weston Holdings, Inc. (NYSE: LW) rose over 1% on Thursday. The stock has gained 4% over the past three months. The French fry giant is slated to
Comments
Comments are closed.