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.