(Reuters) – Activision Blizzard Inc’s (ATVI.O) forecast fourth-quarter adjusted earnings below estimates, such as the video-game publisher, is faced with stiff competition online, a free-to-play games.
FILE PHOTO: The Activision stand will be shown at E3 2017 And the Electronic Entertainment Expo in Los Angeles, California, USA, June 13, 2017. REUTERS/ Mike Blake/
The company expects its current-quarter adjusted revenue of $2.65 billion, missing analysts ‘ average estimate of $2.75 billion, according to IBES data, Refinitiv.
The company had already been labeled by 2019, a “year of transition”, the cutting of 800 jobs, and will focus on investing in the development of game franchises like “Candy Crush,” and “Overwatch” on the promotion of the top-and the bottom line.
Traditional publishers are console-based, desktop, video games have faced fierce competition from the growing popularity of the online, free-to-play games, such as “PUBG”, Epic Games “Fortnite,” and Electronic Arts ‘ (EA.D) “Lightning Legends”.
And the weather forecast, overshadowing a better-than-expected third-quarter adjusted earnings that were lifted by the recent launches Call of Duty: Modern Warfare” and “Call of Duty: Mobile.
With the latest version of ‘Call of Duty’ will be launched on Oct. 1 and racked up 100 million downloads worldwide during its first week, according to industry, site and Sensor Towers.
Activision, is behind popular franchises such as “Diablo” and “World of Warcraft”, it reported adjusted revenue of $1.21 billion for the third quarter ended Sept. 30. Analysts on average had expected revenue of $1.17 billion.
The company, which is still available in the e-sports push is set to see the launch of “Call of Duty, League of Aug. 24 by 2020, following its highly successful “Overwatch” pack.
The company’s net income fell to $204 million, or 26 cents per diluted share, for the fourth quarter of $260 million, or 34 cents a share, a year earlier.
With the exception of the items, the company earned a 0.38 cents per share.
Report by Ayanti Berra in Bengaluru; Editing by Shounak Dasgupta