Activision Blizzard Q1 Profit Up - Update

(RTTNews) - Activision Blizzard Inc. (ATVI) on Thursday reported an increase in profit for the first quarter, as revenues increased driven by its blockbuster game Call of Duty.

Santa Monica, California-based Activision's first-quarter profit rose to $500 million or $0.65 per share from $426 million or $0.56 per share last year.

Adjusted earnings for the quarter rose to $0.78 per share from $0.72 per share last year. Impact of GAAP deferrals was $0.40 per share, compared to $0.41 per share last year.

On average, 27 analysts polled by Thomson Reuters expected earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.

Activision, developers of the popular "Call of Duty" and "Warcraft" franchises, said first-quarter revenues rose to $1.97 billion from $1.73 billion last year. Impact of GAAP deferrals was $581 million compared to $530 million last year. Analysts had a consensus revenue estimate of $1.32 billion.

"Activision Blizzard had another strong quarter, growing year-over-year, setting top and bottom line records, and over-performing guidance. Our continued ability to set new records speaks to the quality of our teams and the breadth and enduring nature of our portfolio of franchises against the backdrop of a large and growing interactive market," said CEO Bobby Kotick.

"As we look ahead, our innovative core gaming pipeline, as well as initiatives like mobile, esports, and advertising, will continue to drive growth for our business."

Looking forward to the second quarter, Activision expects adjusted earnings of $0.46 per share and revenues of $1.56 billion. Analysts currently expect earnings of $0.47 per share and revenues of $1.49 billion.

For the full year, the company expects adjusted earnings of $2.46 per share and revenues of $7.36 billion. Wall Street currently expects full-year adjusted revenue of $7.51 billion and earnings of $2.61 per share.

ATVI is currently trading at $64.90, down $3.49 or 5.10%, on the Nasdaq.