×
You will be redirected back to your article in seconds

Activision Blizzard Q2 Beats Outlook, But Not Last Year’s Second Quarter

Down may not be the new up after all: Activision Blizzard celebrated its Q2 2019 earnings as a success story Thursday, with CEO Bobby Kotick saying: “Our second quarter results exceeded our prior outlook for both revenue and earnings per share.”

But while the results were considerably better than the company’s previous outlook for the quarter, they were still down significantly from last year’s Q2 results. Investors weren’t entirely happy about that trend, and sent Activision Blizzard’s share price down as much as 3% in after-hours trading.

During the quarter ending June 30, Activision generated revenue of $1.4 billion, compared to $1.64 billion during the same quarter a year ago. Adjusted earnings per share for the quarter were $0.43, compared to $0.52 a year ago.

Analysts had expected earnings of $0.26 per share on revenue of $1.19 billion. However, analysts generally report the company’s revenue and earnings per share numbers without GAAP adjustment, as an Activision Blizzard spokesperson clarified in an email sent to Variety.

“As a result, if you would like to compare our reported figures and consensus on an apples-to-apples basis, you would add the impact of deferrals to our GAAP revenues and non-GAAP EPS,” the spokesperson continued. “In this specific instance, Q2 consensus revenue of $1.19 billion can be compared GAAP Net Revenues $1.396 plus the impact of deferrals of negative $189. Q2 consensus EPS of $0.26 can be compared to our reported non-GAAP EPS of $0.53 plus the impact of deferrals of negative $0.15.”

Across its franchises, the company had some 327 million monthly active users. That’s down from 352 million in Q2 of 2018, despite the fact that “Candy Crush,” the company’s most popular mobile game, grew its number of players year-over year. Executives attributed much of the user decline to the company’s split with “Destiny” developer Bungie, which was announced earlier this year.

Also earlier this year, Activision Blizzard announced the layoff of around 775 people, or around 8% of the company’s total workforce. On Thursday, executives said that they were growing the teams for core titles like “Call of Duty,” “Candy Crush,” “World of Warcraft,” “Overwatch” and “Diablo.”

Update: This article was updated with an Activision statement on GAAP vs. non-GAAP results.

Popular on Variety

More Digital

  • Facebook Logo

    Facebook Watch Signs Content Pact With France's M6, Unveils European Short-Form Slate

    Facebook Watch has inked a content pact with French channel M6 and unveiled a slate of short-form content from European digital publishers for the platform. The deal with M6 will see the French broadcaster place spinoff programming from some of its hit shows on Facebook Watch. M6 will run pre- and after-show clips, interviews, and [...]

  • Snow White

    What's Coming to Disney Plus Starting in November

    Disney unveiled the complete list of films to premiere on its streaming service Disney Plus via a lengthy Twitter thread Monday. With its powerhouse catalog including Marvel, Pixar, Star Wars, and National Geographic properties, the full magnitude of the Disney empire will be seen once the streaming service launches. Along with Disney originals previously announced [...]

  • Stock market

    Trading In Music's Futures: How to Cash In on the Industry's Gold Rush (Guest Column)

    The music industry is entering a time of financial prosperity thanks to the widespread use of streaming services like Spotify, Apple Music, and Tidal. According to a recent report by Musicwatch, 77% of all internet users in the U.S. stream music, while Goldman Sachs projects a revenue pot of $34 billion by 2030. Finally, the [...]

  • Grace Helbig

    Grace Helbig Hosting Facebook Watch Show 'Ladies First' About Empowered Women

    Longtime YouTube creator Grace Helbig has a new series — coming to Facebook Watch. In the unscripted eight-episode show “Ladies First with Grace Helbig,” set to premiere Tuesday, Oct. 22, the digital star sits down with a series of “empowered women” to learn about how they’re making a positive impact. Guests include actress-comedian Margaret Cho, [...]

  • Fortnite-Season-X-Out-of-Time

    'Fortnite' Goes Dark: A Masterful Marketing Stroke by Epic Games

    On Sunday, “Fortnite” — the most popular game on Earth right now — without warning, imploded into darkness. At around 2 p.m. ET on Oct. 13, a meteor in Season 10 of “Fortnite” that had been biding its time set off a cataclysmic chain reaction that sucked up everything on the the island and eventually [...]

  • reddit-snapshat-sharing

    Reddit Adds Snapchat Sharing to Its iOS App

    In a first such integration with other social networks, Reddit has added an option to share content from its iOS app to Snapchat. iPhone users can now share Reddit posts with their contacts on Snapchat, or add Reddit content to their Snapchat stories. Anything shared on Snapchat includes a special Reddit sticker, and links back [...]

More From Our Brands

Access exclusive content