Activision Blizzard Gears Up For A Promising Future
Buoyed by the burgeoning popularity of “Call of Duty“, the tremendous response to “Overwatch” and the continued strength of King Entertainment’s “Candy Crush“, Activision Blizzard (NYSE:ATVI) was able to beat estimates with its Q2 results. The company’s revenues more than doubled year over year to $1.61 billion, primarily due to the acquisition of King Digital and the strong response to the competitive game “Overwatch“. Since the launch of the so called futuristic first person shooter game on May 24 2016, it has garnered a staggering 15 million players globally. Along with continued strength across the portfolio, this helped Activision record its biggest quarterly online player community of 33 million monthly active users (MAUs). Overall, the company recorded 491 million MAUs.
Looking ahead, Activision appears well settled for the near term, thanks to its strong portfolio of globally famous games and the upcoming launch of “World of Warcraft’s” expansion, “Legion.” “Overwatch” appears to be just getting started and it is going garner incremental popularity because it touches upon competitive play/e-sports, a domain that has drawn a lot of attention. World of Warcraft appears to have ran its course but the new expansion should provide a significant near term increase in subscribers. Alongside, Activision’s growth will get a lift from the launch of a new adventure for “Hearthstone“, an expansion of the “Destiny” universe, a new game entitled “Skylanders: Imaginators” and the highly anticipated “Call of Duty: Infinite Warfare“. The company expects revenues of $6.4 billion for the year with EPS of $1.83, which will represent a significant increase over last year’s levels of $4.6 billion and $1.32, respectively. Although much of the growth will be attributable to the acquisition of King Digital, Activision’s organic growth would also play a vital role.
Have more questions on Activision Blizzard (NASDAQ: ATVI)? See the links below.
- What Is Activision Blizzard’s Revenue & EBITDA Breakdown?
- By What Percentage Have Activision Blizzard’s Revenues And EBITDA Grown Over The Last Five Years?
- What’s Activision Blizzard’s Fundamental Value Based On Expected 2016 Results?
- How Has Activision Blizzard’s Revenue And EBITDA Composition Changed Over 2011-2015?
- Where Will Activision Blizzard’s Revenue And Gross Profit Growth Come From Over The Next Three Years?
- Activision Blizzard’s Console Market Share Witnessed A Decline In 2015; Digital Channels Provide Respite
Notes:
- What’s Happening With Activision Blizzard Stock?
- What’s Next For Activision Blizzard Stock After An 11% Fall Yesterday?
- Up 10% In A Month, Does Activision Blizzard Stock Have More Upside?
- What To Expect From Activision Blizzard’s Q4?
- What’s Next For Activision Blizzard Stock After FTC Plans To Block The Microsoft Acquisition?
- What’s Happening With Activision Blizzard Stock?
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)