Activision Blizzard Announces Strong Sales, Q3 Results

The Associated Press reports that “Activision Blizzard Inc., maker of the blockbuster ‘Call of Duty’ video game franchise, said Tuesday that strong sales led to better-than-expected results for its third quarter and raised its full-year forecast. The stock jumped in after-hours trading.”

“Activision said sales of its “Destiny” and “World of Warcraft” games helped drive adjusted revenue up 78 percent in the three months that ended in September to $1.17 billion. That topped analysts’ forecast for $991.8 million, according to Zack’s, and last year’s revenue of $657 million.”

“The company gained 7.4 million subscribers to ‘World of Warcraft” during the quarter, ahead of its release of ‘Warlords of Draenor.’ The company also raised its full-year outlook as it prepares for sales of the latest “Call of Duty” installment which was released Monday.”

UPDATE: Wall St. Journal’s “Heard on the Street” adds: “The smashing success of the new “Destiny” videogame couldn’t come at a better time for Activision Blizzard.”

“The videogame publisher has been fighting a multifront war of sorts. One is against critics who dinged the initial release of “Destiny” with disappointing scores. That caused some to wonder if the much-hyped game would misfire. The other battle has been against analysts and investors worried its flagship “Call of Duty” franchise is finally showing its age.”

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