Activision Blizzard reported lower second-quarter earnings and revenue after the company noticed lower participation in its games. Obligations Deductible and low reserves for that. World of Warcraft.
The company reported net income of $1.6 billion, down from $2.3 billion in the previous quarter. The company reported earnings per share of 36 cents, compared with $1.12 a year earlier, as the company continues to invest in technology and people.
Activision Blizzard reported active users at 361 million monthly active users, up from 372 million in the previous quarter.
“Our acquisitions of Proletariat and Peltarion in the last quarter further strengthen our development capabilities, including our AI and machine learning capabilities. Even in a difficult economic environment, with so many companies announcing employee freezes and layoffs, our number of developers grew 25% year-over-year through the end of Q2. Our talented teams are planning an exciting new release. Obligations, world of war s Supervision content later this year,” CEO Bobby Kotick said in an earnings release.
Planned releases include Call of Duty: Modern Warfare IInew Call of Duty: Warzone 2.0 experience, World of Warcraft: Wrath of the Lich King Classic, dragonflight world of warcraft, s surveillance 2.
“While the company recognizes risks, including labor market and economic conditions, and we still have significant performance ahead, we expect these releases to grow our global audience, deepen community engagement and drive growth year after year.” . in the player’s investment in the fourth quarter and beyond,” the earnings release said.
The games publisher did not provide guidance for the coming quarters due to Microsoft’s pending acquisitions, though it said it expects GAAP revenue and EPS to remain lower in the second half of the year.
Microsoft announced a $68.7 billion deal to acquire the video game publisher in early January. If the deal goes through, Microsoft, which owns Xbox, will become the third-largest gaming company by revenue. The transaction is expected to close in Microsoft’s fiscal year ending June 30, 2023 and has been approved by the boards of directors of Activision Blizzard and shareholders of Microsoft and Activision Blizzard.
“We certainly hope to complete the pending $95 per share transaction with Microsoft as soon as possible,” Kotick said Monday.
However, the deal has faced regulatory scrutiny, with Britain’s Competition and Markets Authority becoming the latest to launch an investigation into the planned merger.
The company’s second quarter ended on June 30. As of July 1, Activision Blizzard converted nearly 1,100 US contingent and contingent workers to full-time workers as part of broader unionization with the company. The change raised the minimum hourly wage for workers to at least $20 an hour, which is also expected to incur additional costs.
The company recently saw its second union effort with quality control testers in Albany, New York, demanding voluntary recognition from its group on July 19. This comes after workers at an Activision Blizzard subsidiary in Wisconsin voted to unionize in May.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
