Activision Blizzard Inc. ATVIposted first-quarter 2018 non-GAAP earnings of 78 cents per share, which increased 8.3% from the year-ago quarter.
Including GAAP deferrals, adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate by 3 cents and increased 22.6% from the prior-year quarter.
Revenues (including deferrals) of $1.38 billion surpassed the Zacks Consensus Estimate of $1.32 billion.
Activision is primarily riding on its well-known franchises like Call of Dutyand Overwatch, which fueled top-line improvement in the quarter. King Digital’s Candy Crushcontinues to contribute significantly to the company’s revenues.
Quarter Details
Excluding deferral revenues, Activision reported sales of $1.97 billion, up 13.9% year over year.
Segment wise, product sales (36.6% of total net revenues) were $720 million, up 41.5%. Subscription, licensing and other revenues (63.4%) increased 2.3% to $1.245 billion.
Activision earned $1 billion in-game net bookings in the quarter. The company had over 374 million monthly active users (MAUs) at quarter end.
Activision Publishing’s revenues increased 31% year over year to $312 million. Activision had 51 million MAUs, up 7% year over year but up 12% sequentially, driven by the Call of Duty: WWII, Destiny 2and Crash Bandicoot. The release of Call of Duty: Black Ops 4will drive engagement further.
Blizzard’s revenues of $480 million increased 8% from the year-ago quarter driven by in-game content, strong presales of World of Warcraftand Overwatch League. Blizzard had 38 million MAUs, backed by World of Warcraft, Overwatchand Hearthstone. The company’s presence is also being strengthened in the lucrative e-sports market with Overwatch Leaguedriving viewership and engagement.
King Digital’s mobile business recorded highest quarterly net bookings in history. King’s total revenues of $534 million increased 3% sequentially and 13% year over year to set a record level since the first quarter of 2015. King Digital reported MAUs of 290 million, slightly down sequentially but overall engagement remained strong. MAUs for Candy Crushincreased sequentially, setting time spent per player at a record level. King also has some new releases scheduled for the later part of the year in order to grow its network further.
On the basis of distribution channels, Activision reported retail channel sales of $409 million (up 51% year over year) and digital online revenues of $1.63 billion (up 6%). Digital revenues contributed 74% of total revenues in the quarter. Other revenues grew 33% year over year to $93 million.
On the basis of platform, revenues from console (42%) grew 33% to $817 million. Mobile and ancillary revenues (27%) increased 13% to $536 million. However, revenues from PC (26%) declined 8% to $519 million.
On a geographical basis, revenues from North America (54%) increased 15% to $1.065 billion, while that from EMEA (35%) grew 24% to $687 million. Revenues from Asia Pacific (11%) fell 12% to $213 million.