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Activision Blizzard pre-releases earnings after Britain blocks Microsoft deal

Activision Blizzard pre-releases earnings after Britain blocks Microsoft deal

FILE PHOTO: Activision games "Call of Duty" are pictured in a store in the Manhattan borough of New York City, New York, U.S., January 18, 2022. REUTERS/Carlo Allegri

26 Apr 2023 10:49PM (Updated: 26 Apr 2023 11:58PM)

Call of Duty maker Activision Blizzard beat quarterly bookings estimates on Wednesday (Apr 25), as it reported results a day earlier to allay concerns about its business after Britain blocked its US$69 billion buyout by Microsoft.

Shares of the company were trading 10 per cent lower, showing little reaction to the earnings report.

Activision said it planned to fully support Microsoft's efforts to appeal the decision, which has dealt an unexpected blow to the biggest-ever deal in gaming over concerns it would hinder competition in cloud gaming.

"We remain confident that our deal with Microsoft benefits competition, consumers and job creation in markets around the world, especially in the UK," Activision CEO Bobby Kotick said.

After a slow 2022, gaming companies are rebounding this year, helped by the launch of new titles and updated consoles.

Activision reported quarterly bookings of US$1.86 billion, compared with analysts' estimate of US$1.79 billion, according to Refinitiv.

Mobile net bookings for its King division recorded double-digit growth, while pre-sales for its "Diablo IV" were also strong. The game is due for release on Jun 6.

The company said monthly active users (MAUs) were 368 million during the quarter.

Net income rose to US$740 million, or 93 cents per share, from US$395 million, or 50 cents per share, a year earlier.

Source: Reuters

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