Stefan Mileschin

Levels up

Activision Blizzard forecast full-year adjusted revenue above analysts’ estimates thanks to strong demand for the latest chapter in its “Call of Duty” franchise from gamers staying at home during the COVID-19 pandemic.

The company expects full-year adjusted sales to be $8.45 billion, above Wall Street’s average estimate of $8.31 billion.

Shares of the company were up nearly five per cent in extended trading.

The company seemed to get a boost from the COVID-19 pandemic, which has forced people to remain indoors, leading to a surge in demand from stay-at-home gamers.

In the United States alone, videogame sales jumped 25 per cent year-over-year to $7.7 billion in December and Activision’s “Call of Duty: Black Ops Cold War” was the bestseller across all platforms in 2020, according to data from research firm NPD.

Activision said 2020 marked a record year for its “Call of Duty” franchise, which drew more than 100 million monthly active players across all gaming platforms.

The company also forecast first-quarter adjusted revenue to be $1.75 billion, above analysts’ average estimate of $1.67 billion.

Activision’s adjusted revenue for the quarter ending in December was $3.05 billion, above estimates of $2.83 billion.

Fourth-quarter net income fell to $508 million from $525 million a year earlier.

https://fudzilla.com/news/gaming/523...t-expectations