Activision raises full-year forecast, third quarter revenue tops estimates

Activision Blizzard Inc reported higher-than-expected revenue for the third quarter, boosted by the success of its “World of Warcraft: Legion” and “Overwatch” videogames as well as its acquisition of “Candy Crush” mobile game-maker King.

The company also raised its full-year adjusted profit and revenue forecasts.

Activision’s total adjusted revenue, which includes deferred revenue, rose to $1.63 billion in the third quarter ended Sept. 30 from $1.04 billion a year earlier.

Analysts on average had expected revenue of $1.57 billion, according to Thomson Reuters I/B/E/S.

Revenue from the company’s high-margin digital business more than doubled to $1.34 billion.

Activision raised its full-year adjusted revenue forecast to $6.53 billion from $6.48 billion, and its profit expectations to $2.02 per share from $1.90.

However, its forecasts for the key holiday-shopping quarter were slightly below analysts’ estimates, amid expectations of heavy competition from games launched by rivals.

After hours, the stock is volatile on the downside, as low as 5.46% and is now down 3.85%.

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