×
You will be redirected back to your article in seconds

Activision Blizzard Earnings Better Than Expected for Q1

Powered by record revenues from digital channels of more than half a billion dollars, gamemaker Activision Blizzard posted better-than-expected earnings in the first quarter and increased its projections for all of 2015.

The maker of “Call of Duty,” “World of Warcraft” and other games announced that more than three quarters of its revenue ($538 million) came from digital channels, rather than retail product sales or other sources. The company now projects a slight increase in net revenues from $4.4 billion to $4.425 billion for 2015. It pegged earnings per share for the year at $1.20, up from the previously projected $1.15.

Activision Blizzard claimed more than 150 million active users worldwide over the past year who spent 12 billion hours playing the company’s games, said chief executive Bobby Kotick. Enduring titles continue to show strength for the company. The “Call of Duty” franchise, for example, experienced double-digit percentage growth compared to the prior year. A free beta version of the game in China continued to build revenue via sales of virtual items like customized vehicles, weapons and armor.

The Santa Monica-based company recently announced it would bring back one of its favorites of the past, unveiling a “Guitar Hero Live” that will be available on consoles, tablets and mobile phones this fall.

Even in cases where its audience declined, the company managed revenue advances because of increased pricing and time of engagement per user. Subscribers for “World of Warcraft” declined to 7.1 million from 10 million, for example, but regional price increases and the purchase of more value-added items partially covered the decline.

Kotick ascribed the company’s success to talent acquisition and retention. He noted that Activision Blizzard had been recognized as one of the “100 Best Companies to Work For” by Fortune magazine. “Our biggest accomplishment remains our ability to attract and retain so many talented, capable, driven and hard-working people with an unyielding commitment to excellence,” Kotick said.

Popular on Variety

More Digital

  • Netflix - Apple TV

    Netflix Stock Drops After CEO Acknowledges 'Tough Competition' Coming From Disney, Apple

    Netflix shares fell as much as 7% Friday to a nine-month low, coming after CEO Reed Hastings commented that the November launches of Disney Plus and Apple TV Plus will introduce a “whole new world” of competition. Hastings, speaking at the Royal Television Society conference Friday in Cambridge, England, said, “While we’ve been competing with [...]

  • Facebook

    Facebook Suspends Tens of Thousands of Apps During Privacy Investigation

    Facebook has suspended tens of thousands of apps ever since it began investigating potential privacy abuses, the company said Friday. The apps in question had been built by around 400 developers, and a suspension doesn’t necessarily indicate actual privacy violations. Facebook began combing through millions of apps that made use of its platform after the [...]

  • tivo logo

    Tivo Plans to Launch Android TV Dongle, Tivo+ Curation App

    DVR maker Tivo is getting ready to release a new device that may not record television at all: The company plans to launch a $50 Roku-like TV dongle early next year, its new CEO Dave Shull revealed in a conversation with CNN this week. The new device will be powered by Google’s Android TV platform, [...]

  • Still from "Andhadhun"

    Microsoft Streaming Deal Lifts Shares in India’s Eros

    Shares of leading Bollywood film distributor Eros International soared by 38% on Thursday following news of the company’s link up with Microsoft to develop a new generation of video streaming platform. The multinational company said that its Eros Now video operation would work with Microsoft Azure to develop its technology in three ways. They seek [...]

  • Comcast X1 DAZN

    Comcast Adds DAZN Sports-Streaming Service to Xfinity Flex, Sets Launch on X1

    DAZN, the digital sports service headed by ex-ESPN boss John Skipper, is now available to Comcast broadband customers on Xfinity Flex and will be available on Xfinity X1 this fall. It’s the first distribution deal for DAZN with a major U.S. provider since it debuted the combat-sports-oriented service in the States a year ago. In [...]

  • YouTube logo

    YouTube Raises Bar for Channel Verification, Stripping Some Creators of Verified Status

    YouTube is making it harder for channels to receive a verification badge indicating their authenticity — and the program’s new requirements mean that some channels won’t be eligible for verification. Like other internet platforms, YouTube indicates to viewers that specific channels are officially run by the creator, artist, celebrity or company they represent with an [...]

More From Our Brands

Access exclusive content