(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.
Activision Blizzard said it expects robust performance from “Candy Crush” and “World of Warcraft” in the third quarter, complemented by the launch of the “Diablo II: Resurrected”.
It forecast quarterly adjusted revenue at $1.85 billion, compared with analysts‘ estimates of $1.81 billion.
Video game publishers saw a jump in consumer spending as the COVID-19 pandemic last year forced people to stay hunkered down at home, but with the easing of restrictions due to vaccine roll-outs gamers are cutting their console time for outdoor activities.
“As competitor and peer Take-Two and its guidance indicate, with the world opening up, despite the Delta variant, there are challenges,” Third Bridge analyst Scott Kessler said.
Activision Blizzard’s raised full-year adjusted revenue forecast of $8.65 billion came in below estimates of $8.77 billion, according to IBES data from Refinitiv.
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 are committed to doing everything possible to ensure our company has a welcoming, supportive and safe environment,” Chief Executive Officer Bobby Kotick said on Tuesday.
The company 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)