Activision Blizzard Inc (NASDAQ:ATVI) reported a smaller decline in second-quarter revenues and earnings per share than expected as its Call of Duty franchise saw lower levels of engagement post-pandemic.
As antitrust regulators examine its agreed takeover by Microsoft Corporation (NASDAQ:NASDAQ:MSFT), revenue for the video games group fell to US$1.64bn in the quarter from US$1.92bn a year ago, but above the US$1.58bn forecast by Wall Street analysts.
EPS came in at US$0.47, compared with US$0.91 last year and the Street consensus of US$0.48.
Turnover from its Activision business, maker of Call of Duty, declined nearly 40% year-over-year, while Blizzard revenue declined 7% year-over-year as the same quarter last year saw the launch of World of Warcraft: Burning Crusade Classic, which was only partially offset by growth for Diablo Immortal and Hearthstone.
Mobile gaming specialist arm King grew revenue 8%, driven by double-digit growth in Candy Crush franchise payers and over 20% growth in its ad business.
During recent months, the group made two acquisitions, with King snapping up artificial intelligence software developer Peltarion in June to enhance its machine learning technology, and Blizzard buying Boston-based studio Proletariat in July to more closely work with its World of Warcraft developers.
Management continues to expect the Microsoft deal to close soon.