Revenue estimated at $1.55 billion in the second quarter
We’ve seen how Activision Blizzard (ATVI) managed to achieve double-digit revenue growth in the first quarter despite no major gaming releases and what has traditionally been a slow quarter after the holiday season. Activision Blizzard has attributed this revenue growth to a successful shift toward a games-as-a-service model.
The company is looking to drive revenue by focusing on eSports leagues, digital revenue and advertising, and the launch of new gaming franchises. In the second quarter, Activision Blizzard expects revenue of $1.55 billion with a gross margin of 78% and an operating margin of 31%. It has estimated non-GAAP earnings per share of $0.46.
Revenue of $7.35 billion in fiscal 2018
Activision Blizzard has forecasted revenue of $7.36 billion in fiscal 2018 with a gross margin of 78% and an operating margin of 34%. Its non-GAAP EPS are estimated at $2.46 for fiscal 2018.
While net bookings are forecast at $1.35 billion in the first quarter, this figure stands at $7.5 billion for fiscal 2018. Activision Blizzard increased its revenue estimates marginally from $7.35 billion after the Q4 2017 earnings. EPS estimates also rose from the previous forecast of $2.45.
Activision Blizzard saw a modest rise in forecasted revenue, which it and attributed to timing issues. This rise indicates that revenue in the second half of fiscal 2018 would account for the majority of the company’s revenue.