U.S. Markets open in 5 hrs 55 mins

Post Earnings Coverage as Activision Blizzard's Quarterly Revenue Jumped 19%; EPS Gained 17%

Upcoming AWS Coverage on RealNetworks Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 18, 2017 / Active Wall St. announces its post-earnings coverage on Activision Blizzard, Inc. (NASDAQ: ATVI). The Company released its first quarter fiscal 2017 financial results on May 03, 2017. The video game maker posted record revenue and surpassed top- and bottom-line expectations. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Activision Blizzard's competitors within the Multimedia & Graphics Software space, RealNetworks, Inc. (NASDAQ: RNWK), reported on May 03, 2017, results for its Q1 ended March 31, 2017. AWS will be initiating a research report on RealNetworks in the coming days.

Today, AWS is promoting its earnings coverage on ATVI; touching on RNWK. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended March 31, 2017, Activision Blizzard posted a first quarter revenue record of $1.73 billion, up 19% compared with revenue of $1.46 billion for Q1 2016. The Company's revenue numbers easily surpassed analysts' consensus of $1.09 billion. Activision Blizzard's net revenues from digital channels were a Q1 record of $1.39 billion, growing 50% on a y-o-y basis.

Activision Blizzard reported earnings of $426 million, or $0.56 per share, in Q1 2017 compared with earnings of $363 million, or $0.48 per share, in Q1 2016. The Company reported adjusted earnings of $0.31 per share, ahead of Wall Street's estimates of $0.21 per share.

Business Details

Audience Reach

In Q1 2017, Activision Blizzard had 431 million Monthly Active Users (MAUs). Blizzard reported its biggest Q1 online player community in its history with MAUs accounts (MAUsA) of 41 million, up 58% on a y-o-y basis. Overwatch continues to be Blizzard's fastest growing new franchise, reaching over 30 million players globally in less than a year after launch. Overwatch is now the 8th billion-dollar franchise in Activision Blizzard's portfolio.

Activision had 48 million MAUsA in Q1 2017, down year-over-year primarily due to expected softness from last year's Infinite Warfare™ release. Activision expects to release Call of Duty: WWII on November 03, 2017.

The Company's King had 342 million MAUsA for Q1 2017, down compared to the year ago period, but better per user engagement and investment. King had two of the top 10 highest-grossing titles in the US mobile app stores for the fourteenth quarter in a row.

Player Investment

During Q1 2017, Blizzard's revenues from in-game content grew more than 25% on a y-o-y basis, driven by revenues from World of Warcraft in-game content and continued strength of Overwatch customization items. Activision expects to release a new content offering for Call of Duty: Black Ops 3 fans, Zombies Chronicles, on May 16, 2017.

King's Q1 2017 gross bookings per paying user grew for the 7th quarter in a row to a new record. The Candy Crush™ franchise showed continued stability with mobile bookings up on a q-o-q basis.

Cash Matters

For the reported quarter, Activision Blizzard's operating cash flows were a Q1 record of $411 million, up 22% on a y-o-y basis. During Q1 2017, the Company prepaid $500 million of its term loan.

Outlook

Activision Blizzard raised its full-year 2017 adjusted earnings forecast to $1.88 per share from the previous guidance of $1.85 and its adjusted revenue projection to $6.33 billion compared to $6.30 billion announced earlier.

Stock Performance

On Wednesday, May 17, 2017, the stock closed the trading session at $54.23, falling 4.49% from its previous closing price of $56.78. A total volume of 10.30 million shares have exchanged hands, which was higher than the 3-month average volume of 5.99 million shares. Activision Blizzard's stock price soared 19.97% in the last three months, 44.46% in the past six months, and 43.13% in the previous twelve months. Moreover, the stock skyrocketed 51.10% since the start of the year. The stock is trading at a PE ratio of 40.08 and has a dividend yield of 0.55%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street