Activision Blizzard share price: Q3 profit beats expectations

on Nov 7, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Thursday, November 7: Activision Blizzard Inc (NASDAQ:ATVI), the world’s largest video-game publisher by market capitalisation, yesterday reported third-quarter profit that topped analysts’ expectations and raised slightly its 2013 outlook.

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In today’s trading Activision Blizzard shares rose two percent to $16.86 as of 15:02 UTC.
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
**Q3 results**
Activision Blizzard’s GAAP revenue fell to $691 million in the three-month period ended September 30, from $841 million a year ago, while GAAP net income dropped to five cents a share from 20 cents. But the results were better than the average analysts’ forecast for earnings of three cents a share on revenue of $589.4 million, according to Thomson Reuters I/B/E/S.

The company said that non-GAAP revenue, adjusted for the deferral of digital revenue and other items, fell 12.5 percent to $657 million from $751 million a year ago. Non-GAAP earnings per share declined to eight cents from 15 cents a year earlier.
The drops in revenue and profit reflect a decline in consumer spending on traditional video games amid a shift towards games for mobile devices such as smartphones and tablets. Activision Blizzard’s subscription-based online game World of Warcraft, one of the company’s major sources of revenue over the years, has been gradually losing players. Its subscriber base fell to 7.3 million in the third quarter, from 7.7 million in the previous quarter.

**Outlook**
The company raised its GAAP revenue outlook for 2013 to 83 cents per share, above its previous forecast of 80 to 82 cents per share. The GAAP revenue estimate was also raised slightly to $4.32 billion from $4.31 billion.

The company’s Chief Executive Bobby Kotick told Reuters that “our overall comfort with the market” before the release of the next generation of console hardware – Sony Corp’s PlayStation4 and Microsoft’s Xbox One – had prompted the company to raise its 2013 outlook.

“We feel like even with all the volatility of the new console launches, we have a pretty good view into what’s likely going to happen and we are confident about our business,” Kotick said.
**As of 15:30 UTC buy Activision Blizzard shares at $ 16.69**
**As of 15:30 UTC sell Activision Blizzard shares at $16.68**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.

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