Activision Blizzard, the biggest US video game publisher, on Monday reported revenue that beat analysts’ estimates, but adjusted sales still declined 15% from a year ago due to a softActivision, which is in the process of being acquired by Microsoft for $69bn, brought in adjusted revenue in the second quarter of $1.64bn, compared with the average analyst projection for $1.6bn. Adjusted earnings per share were 47c, almost 50% lower than a year earlier and slightly below analysts’ estimates.
Activision said it expects revenue and earnings per share to “remain lower year on year in the second half”. The shares were little changed in extended trading at $80.30., a new entry in the series, will be released this autumn. But the series will then skip 2023, Bloomberg has reported. Activision will instead release add-ons forrelated content. The next mainline game in the series, from the Treyarch studio, is planned for 2024.
Microsoft announced its purchase of Activision in January. The Xbox maker swooped in while Activision’s shares had suffered amid an ongoing sexual misconduct scandal in 2021. Activision’s stock has gained about 20% since the January announcement, although it is still trading well below the offer price of $95 a share, suggesting market uncertainty that the deal will go through.
Lina Khan, the newly appointed head of the US Federal Trade Commission, has indicated that she plans to take a tough stance against technology mergers. Activision has said it expects the transaction to close in Microsoft’s fiscal year ending June 2023.