Activision Blizzard revenue jumps in Q1 2013

Video games maker Activision Blizzard Inc warned investors on Wednesday that it expects a challenging second-half and holiday quarter driven by heavy competition and uncertainty around the launch of new video game consoles.

Shares of Activision were down 6.3 percent to $14.30 in after-hours trading after closing at $15.26 on the Nasdaq.

Subscribers of “World of Warcraft,” Activision’s most profitable business and the source of a steady stream of subscription-based revenue, dropped sharply to 8.3 million last quarter from 9.6 million in the previous quarter, the company said.

However, the game publisher’s warning overshadowed strong first-quarter earnings.

The Santa Monica-based company said non-GAAP revenue, adjusted for the deferral of digital revenue and other items, rose to $804 million, surpassing Wall Street’s average revenue forecast for $704.6 million and up 37 percent from $587 million in the same quarter a year ago.

Non-GAAP income totaled $199 million, or 17 cents per share, in the fourth quarter, compared with $67 million, or 6 cents per share a year earlier. This beat Wall Street’s average earnings estimate of 11 cents per share, according to Thomson Reuters I/B/E/S.

(Reporting by Malathi Nayak; editing by Richard Chang, G Crosse)

More gaming news

Electronic Arts total revenue, profit drop in fourth quarter

EA drops gun makers, not their guns

Disney teams with EA for new Star Wars games

Zynga seeks comeback, embraces austerity and FarmVille

Activision CEO among top earners

Microsoft to reveal next-generation Xbox

EA voted “Worst Company in America”, again

Latest news

Partner Content

Show comments


Share this article
Activision Blizzard revenue jumps in Q1 2013