Activision Results Hurt by Lack of New Games
09 Août 2019 - 12:32AM
Dow Jones News
By Sarah E. Needleman
Activision Blizzard Inc.'s revenue fell nearly 15% in the second
quarter, hurt by the videogame maker once again not releasing any
major new games during the period.
The largest U.S. game publisher by market capitalization instead
leaned on content updates and special events for existing
franchises to keep players engaged, just as it did a year ago.
"I'm encouraged by the early momentum of our increased focus
across our key franchises," Activision Blizzard CEO Bobby Kotick.
The next installment of Call of Duty, due out Oct. 25, includes a
new multiplayer mode. A new mobile Call of Duty game is also in the
works.
For the second quarter, Activision reported a profit of 43 cents
a share on $1.4 billion in revenue, under generally accepted
accounting principles, down from 52 cents a share and $1.64 billion
a year ago. On an adjusted basis, Activision Blizzard's results
implied a profit of 38 cents a share on net bookings of $1.21
billion -- both down from a year earlier, but better than the
company's guidance and the average analyst estimate on FactSet.
Digital net bookings fell about 16% to $1.01 billion, while
monthly active users declined about 5% to 327 million. The company
did report an increase in the number of hours people played Call of
Duty.
Activision Blizzard maintained its full-year outlook on net
bookings of $6.3 billion, but raised its full-year outlook on
profit and revenue. It now expects profit of $1.41 a share on
revenue of $6.19 billion, up from its earlier estimate of $1.18 a
share and $6.03 billion, according to generally accepted accounting
principles.
Shares of Activision rose 7 cents to $49.40 in after-hours
trading.
Earlier this year, Activision Blizzard announced plans to
eliminate around 775 people from its workforce of about 9,800. It
said the 8% head count reduction was part of a restructuring effort
aimed at centralizing sales, marketing and other functions -- and
that it also planned to hire 20% more developers to create more
content for its biggest franchises.
Activision Blizzard's peers -- Take-Two Interactive Software
Inc. and Electronic Arts Inc. -- also have reported earnings above
Wall Street expectations for the quarter ended June 30.
Earlier this week, stock prices for all three companies slumped
after President Trump criticized the "glorification of violence" in
videogames following the weekend's mass shootings that left 31
people dead and dozens injured in El Paso, Texas, and Dayton, Ohio.
Two other political figures -- House Minority Leader Kevin McCarthy
and Texas Lt. Gov. Dan Patrick -- also blamed videogames for
contributing to mass shootings, with Mr. Patrick pointing out that
Activision Blizzard's Call of Duty franchise was mentioned in the
El Paso shooter's manifesto. The stocks have since rebounded.
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
August 08, 2019 18:17 ET (22:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Activision Blizzard (NASDAQ:ATVI)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Activision Blizzard (NASDAQ:ATVI)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024