Aug 4, 2017
Activision Blizzard's Revenue and Profit Forecasts Surge Due to 'Overwatch'
Activision Blizzard raised its full-year adjusted revenue and profit forecasts for the second time on Thursday, as the video game publisher benefits from higher digital sales and the popularity of its multi-player futuristic game Overwatch.
The company raised its full-year adjusted profit to $2 per share from $1.88 per share and its adjusted revenue forecast to $6.58 billion from $6.33 billion.
Analysts on average were expecting a profit of $2.02 per share and revenue of $6.54 billion, according to Thomson Reuters I/B/E/S.
Activision also forecast current-quarter adjusted revenue of $1.70 billion, above analysts' average estimate of $1.65 billion.
The company expects to release its highly-anticipated Destiny 2 on Sept. 6 for consoles. Activision said on Thursday pre-orders for Destiny 2 are now above the 2014 game.
Activision's results cap a strong quarter for video game makers including rivals Electronic Arts (EA, +1.73%) and Take Two Interactive (TTWO, +12.22%), despite not launching a major game in the period.
Activision (ATVI, +2.85%) said on Thursday it delivered nearly $1 billion of in-game revenues in the quarter.
The company's net income rose to $243 million, or 32 cents per share, in the second-quarter ended June 30 from $151 million, or 20 cents per share, a year earlier.
Revenue from the company's high-margin digital business rose 14.7% to $1.31 billion, underscoring the shift among players to buy and download games online.
Activision's total adjusted revenue fell 11.9% to $1.42 billion, from $1.61 billion a year earlier.
Analysts on average had expected revenue of $1.23 billion.In the year-earlier period, the company benefited from the launch of Overwatch in May 2016, as well as its acquisition of Candy Crush maker King Digital for nearly $6 billion.