Activision Blizzard faces two significant days in a row — announcing 3Q Earnings today after the market closes and releasing the new Call of Duty tomorrow.
The Wall Street Journal reports that “shares are up nearly 80% since the start of the year, driven by rising sales of high-margin digital content across the industry.” For this quarter “Activision is expected to report adjusted profit of 49 cents a share, according to S&P Global Market Intelligence, down from 52 cents a year ago. Those numbers exclude items Wall Street thinks aren’t a regular part of business.”
Other areas to watch: Mobile and eSports, or what the WSJ calls “ESPORTS MOMENTUM:”
“During the quarter, Activision said it sold the rights for five more teams to compete in the first season of its Overwatch esports league, bringing the total to 12. The new league, built from scratch, is expected to kick off with preseason competition Dec. 7 and go into full swing in January. The teams sold for $20 million each, according to people familiar with the matter, but Activision Blizzard previously said it wouldn’t factor that money into its guidance for the third quarter. The company has, though, factored team sales into its full-year guidance and such revenue is expected to start showing up in its fourth-quarter results.”
We reported most recently on Overwatch here.