Activision shares fell 3% to 51.50 in after-hours trading on the stock market today.
“The Overwatch League is gaining momentum and we’re excited to offer our community of players the best professional league experience.
Video game publisher Activision Blizzard (ATVI) late Thursday beat its first-quarter sales and earnings targets and raised its forecast for the full year, but investors remained skeptical as shares dipped in after-hours action.
It previously guided to earnings of 72 cents a share on sales of $6.0 billion.
XAutoplay: On | Off For the full year, Activision now expects to earn 88 cents a share on sales of $6.1 billion on a GAAP basis.
Activision Blizzard sees record Q1 earnings — 80% of which came from digital sales
As it stated in Activision Blizzard reported earnings for the first quarter of its 2017 fiscal year today, and the numbers were better than it predicted — thanks predominantly to Blizzard games.
Activision Blizzard is claiming a new company record for Q1 revenues and profits, reportedly generating (GAAP) $1.73 billion during the three months ending March 31st.
In terms of profit during the quarter, Activision Blizzard (GAAP) earnings per diluted share hit $0.56, up from $0.48 a year prior — which the company again claims as a new Q1 record.
That’s 19 percent higher than revenues during the same period a year ago, and a bit better than the $1.55 billion Activision Blizzard had expected to generate.
The company reported $1.39 billion of its quarterly revenue was generated from “digital online channels”, which includes digital game sales, subscription fees, and microtransactions — AKA loot boxes.
As it stated in Activision Blizzard beat analysts expectations for both revenues and earnings on Thursday.
Activision generated just $215 million in revenue, while Blizzard was $441 million (up 58 percent from the prior quarter) of the total.
Digital revenues were $1.4 billion of the total $1.7 billion in total revenue for the Santa Monica, Calif.-based company.
Activision Blizzard made a $500 million prepayment on its debt during the quarter.
King and Blizzard tied in reporting operating income of $166 million each, while Activision’s operating profit was just $24 million.