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Activision Blizzard's annual sales forecast tops estimates on Call of Duty boost

Activision Blizzard's annual sales forecast tops estimates on Call of Duty boost

The entrance to the Activision Blizzard on campus is shown in Irvine, California, on Aug 6, 2019. (Photo: REUTERS/Mike Blake)

NEW YORK: Activision Blizzard on Thursday (Feb 4) forecast full-year adjusted revenue above analysts' estimates, driven by strong demand for the latest instalment of its blockbuster Call of Duty franchise from gamers staying at home during the COVID-19 pandemic.

The company expects full-year adjusted sales to be US$8.45 billion, above Wall Street's average estimate of US$8.31 billion, according to Refinitiv IBES data.

Shares of the company were up nearly 5 per cent in extended trading.

Videogame makers across the world continue to benefit from the COVID-19 pandemic, which has forced people to remain indoors, leading to a surge in demand from stay-at-home gamers.

In the United States alone, videogame sales jumped 25 per cent year-over-year to US$7.7 billion in December and Activision's Call of Duty: Black Ops Cold War was the bestseller across all platforms in 2020, according to data from research firm NPD.

Activision said 2020 marked a record year for its "Call of Duty" franchise, which drew more than 100 million monthly active players across all gaming platforms.

The company also forecast first-quarter adjusted revenue to be US$1.75 billion, above analysts' average estimate of US$1.67 billion, according to Refinitiv data.

Activision's adjusted revenue for the holiday-quarter, ended Dec 31, was US$3.05 billion, above estimates of US$2.83 billion, according to IBES data from Refinitiv.

Fourth-quarter net income fell to US$508 million, or 65 cents per share, from US$525 million, or 68 cents per share, a year earlier.

Source: Reuters


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