Thanks to the successful launch of Overwatch and solid growth from Candycrush, Activision Blizzard (NASDAQ: ATVI) performed a decent quarter earnings this time. Both revenue and profit beat the estimates. Furthermore, the game Overwatch just posted all the possibilities for ATVI to seek for continuous growth based on the market of League of Legend and DOTA2.
Activision Blizzard Inc. said a key revenue measure more than doubled in the latest quarter, with a superhero-themed videogame driving strong performance in a period when major rivals stumbled.
Activision Blizzard said revenue adjusted to account for factors including deferred sales of online services rose to $1.61 billion in the quarter that ended June 30 from $759 million in the year-ago period. Wall Street had expected $1.46 billion, according to Thomson Reuters. The company attributed the rise in part to the success of “Overwatch,” released in late May.
Adjusted per-share profit rose to 54 cents from a profit of 13 cents a year ago. Analysts had expected an adjusted 42 cents a share.
Activision Blizzard also raised its outlook for the fiscal year. It now expects revenue of about $6.4 billion and profit of about $1.83 a share, after adjusting to account for factors including deferred sales of online services.
The company, which didn’t put out a major release a year ago, benefited from the industry’s shift to digital downloads and away from games printed on disks. Newly acquired King Digital Entertainment also contributed to adjusted revenue in the quarter, though the “Candy Crush Saga” developer’s monthly active users fell 13% to 409 million from the first quarter, which it blamed on seasonal trends and launch timing.
Shares of Activision Blizzard, which had gained nearly 60% over the past year, rose 1.4% in after-hours trading to $41.40.
Thursday’s results come after Electronic Arts Inc. this week reported a decline in adjusted quarterly revenue and profit.
On a GAAP basis, Activision Blizzard said net income fell to $127 million from $212 million a year ago. Revenue rose to $1.57 billion from $1.04 billion—measures that included sales deferred from previous periods, and excluded deferred revenue from the latest quarter.