August 4, 2015 / 8:23 PM / 4 years ago

Activision Blizzard revenue, profit beat as 'Call of Duty' delivers

(Reuters) - Videogame maker Activision Blizzard Inc (ATVI.O) reported better-than-expected profit and revenue, helped by higher sales of “Call of Duty” and “Hearthstone” franchises, and raised its 2015 revenue and profit forecast.

Copies of Call of Duty Modern Warfare 3 video game published by Activision Blizzard, owned by Vivendi, are displayed in a shop in Rome, October 16, 2012. REUTERS/Tony Gentile

The company’s shares jumped 6.7 pct to $27.40 in after-market trading on Tuesday.

Activision Blizzard, know for its first-person shooter games, raised its 2015 adjusted profit forecast to $1.30 per share from $1.20.

The company also raised its full-year adjusted revenue forecast to $4.60 billion from $4.43 billion.

Analysts were expecting a profit of $1.23 per share on revenue of $4.47 billion, according to Thomson Reuters I/B/E/S.

Activision Blizzard has several titles in the pipeline including updates to popular franchises “Call of Duty”, “Destiny” and “Skylanders”. The company is also reviving “Guitar Hero” this October.

Activision Blizzard forecast third-quarter adjusted profit of 14 cents per share on adjusted revenue of $930 million.

Revenue rose to $1.04 billion from $970 million in the second quarter ended June 30.

Revenue from the “Call of Duty” franchise was powered by sales of “Call of Duty: Advanced Warfare”, which was released on Nov. 4.

Activision Blizzard’s digital business revenue rose 19.5 percent to $569 million.

Videogame publishers are shifting to the lucrative digital business from physical sales as consumers switch to playing on smartphones and tablets from consoles.

“In the second quarter, our monthly active users grew by 35 percent year-over-year,” Chief Executive Bobby Kotick said in a statement.

The company’s net income rose to $212 million, or 29 cents per share, for the three months ended June 30, from $204 million, or 28 cents per share, a year earlier.

Excluding items, the company earned 13 cents per share on revenue of $759 million.

Analysts had expected a profit of 8 cents per share on revenue of $665.5 million.

Up to Tuesday’s close, Activision Blizzard’s shares had risen about 28 percent this year.

Reporting by Kshitiz Goliya and Subrat Patnaik in Bengaluru

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