by Activision Blizzard (ATVIA) posted stronger-than-expected third-quarter results Monday, saying Microsoft’s planned $69 billion acquisition (MSFT) is expected to be completed by the middle of next year.
Activision said GAAP earnings for the three months ended September were pegged at 55 cents per share, down 33% from the same period last year but better than Street’s consensus forecast of 50 cents per share. The group’s adjusted revenue, excluding deferred payments, declined 7.7% to $1.735 billion, but was just above analyst estimates of $1.694 billion. Net gaming bookings rose 13.33% to $1.36 billion, Activision said.
“Our games are the result of passion and excellence. This comes from an environment that fosters inspiration, creativity and an unwavering commitment to develop and support our talent,” said CEO Bobby Kotick. “The dedication and teamwork of our employees is at the heart of an extraordinary workplace that enables the magic embodied in our games.
“We look forward to continuing to bring epic entertainment to serve our global player community as part of Microsoft, one of the world’s most admired companies,” he added. “We continue to expect our transaction to close in Microsoft’s current fiscal year ending June 2023.”
Activision shares were up 0.3% in after-hours trading immediately after the earnings release, indicating an opening bell price on Tuesday of $71.30 apiece.
The New York Post reported on Sunday that some investors are concerned that Microsoft’s efforts to get regulatory approval for the deal, first unveiled earlier this year, are falling short of Activision’s expectations.
It’s about the future of Call of Duty, the group’s most valuable game franchise, currently available on Sony’s PlayStation console. For Microsoft’s deal to work, the Post reported, it would likely have to keep the game exclusively on its XBox platform, but that would limit customer choice and likely raise prices, forcing regulators in the UK, the European Union and the United States are being forced — all of which are investigating the deal — to either turn it down or make promises that the games will be freely available.
Activision said Call of Duty: Modern Warfare II was the first of its flagship franchise to exceed $1 billion in retail sales, with hours played in its first 10 days more than 40% above the previous franchise record.
