Activision Blizzard Inc. reported 32 percent higher earnings in the first quarter, boosted by stronger online and download sales for its “Call of Duty” and “World of Warcraft” game franchises.
After the markets closed Monday, the Santa Monica video game developer reported net income of $503 million (42 cents per share), compared with net income of $381 million (30 cents) a year earlier. Revenue rose 11 percent to $1.45 billion.
“Digital content continues to represent a significant portion of our revenue and increased by about $100 million year over year, enabling us to deliver record first-quarter operating margins and earnings per share,” Chief Executive Bobby Kotick said in a statement.
The company’s adjusted profit – which accounts for one-time items and the impact of deferring revenue and costs of sales for games with online components that are played over time, was $156 million (13 cents). Adjusted revenue was $755 million. Analysts surveyed by Thomson Reuters on average expected adjusted per-share profit of 8 cents on revenue of $665 million.
For the current quarter, the company expects adjusted net income of 4 cents per share on revenue of $575 million. That’s lower than the 8 cents per share profit on revenue of $684 million that analysts are expecting.
The company raised its full-year guidance, and now expects adjusted net income of 73 cents per share, up from 70 cents, and adjusted revenue of $3.95 billion, up from an earlier $3.9 billion. Analysts have been expecting adjusted per-share profit of 72 cents per share on revenue of $4 billion.
Before the earnings were announced, shares closed up 9 cents, or less than 1 percent, to $$11.53 on the Nasdaq.
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