(Reuters) – Activision Blizzard Inc (ATVI.O) topped Wall Street estimates for quarterly profit on Thursday, driven by sales of its blockbuster videogame, “Call of Duty”, but forecast current-quarter and full-year revenue below expectations.
FILE PHOTO: A crowd waits for a video presentation at the Activision booth during the 2014 Electronic Entertainment Expo, known as E3, in Los Angeles, California June 11, 2014. REUTERS/Jonathan Alcorn/File Photo
The company is slated to release “Call of Duty: Black Ops 4” as well as “World of Warcraft: Battle for Azeroth” and “Destiny 2: Forsaken” in the second half of the year.
“Pre-orders are strong,” Activision President Collister Johnson said on a post-earnings call.
The company forecast 2018 adjusted profit of $2.58 per share and revenue of $7.48 billion, while the Street was expecting a profit of $2.60 per share and revenue of $7.52 billion.
Rivals Electronic Arts (EA.O) and Take Two Interactive Software (TTWO.O) have also lined up a clutch of games such as “FIFA 19”, “NBA 2K 19”, “Red Dead Redemption 2” and “Battlefield V” to be released in the second half of 2018.
The results from videogamers come in the backdrop of the massive success of games from the “battle royale” genre such as “Fortnite” and “PlayerUnknown’s Battlegrounds”.
Activision is also tapping into the rising popularity of e-sports through its Overwatch league and recently signed a multi-year agreement with ESPN and Disney XD for live coverage of the league.
“As the mainstream popularity of e-sports continues to grow, we’re well…