Candy Crush owner forecasts upbeat quarterly revenue, shares rise
Aug 3 (Reuters) - Activision Blizzard Inc on Tuesday forecast current-quarter adjusted revenue above estimates, as it expects demand for its popular franchises "Call of Duty" and "Candy Crush" to remain strong, sending its shares 4% higher in extended trading.
Video game publishers have seen a jump in consumer spending, as the COVID-19 pandemic made social distancing a norm last year, preventing casual gatherings with friends and family.
With the easing of restrictions due to vaccine roll-outs, however, gamers are cutting their console time for outdoor activities, causing a dip in video games sales. Last week, Microsoft said its fourth-quarter revenue for Xbox content and services fell.
Activision Blizzard's raised full-year adjusted revenue forecast of $8.65 billion came in below analysts' expectations of $8.77 billion, according to IBES data from Refinitiv.
The company also forecast third-quarter adjusted revenue at $1.85 billion, above estimates of $1.81 billion.
Earlier on Tuesday, the company said J. Allen Brack, president of Blizzard Entertainment, would leave the firm after nearly three years in the role. Jen Oneal and Mike Ybarra have been appointed co-leaders of Blizzard.
The departure comes weeks after the California Department of Fair Employment and Housing filed https://bit.ly/2Vh6dhC a lawsuit against Activision over equal pay violations, sex discrimination, and sexual harassment.
"We remain intensely focused on the well-being of our employees and we are committed to doing everything possible to ensure that our company has a welcoming, supportive and safe environment where all of our team members can thrive," Chief Executive Officer Bobby Kotick said on Tuesday.
Santa Monica, California-based Activision Blizzard reported adjusted revenue of $1.92 billion for the second quarter ended June 30, slightly above expectations of $1.90 billion.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini Ganguli)
