San Francisco (AFP)
Video game giant Activision Blizzard announced on Tuesday that its profits had exploded in the first quarter of this year as gamers spent time and money with the hit game Call of Duty.
Activision said it made $ 619 million in net income in the first three months of this year, which reached $ 2.28 billion, beating expectations.
“Our employees continue to perform exceptionally well under difficult circumstances,” Activision chief executive Bobby Kotick said in a earnings statement.
Kotick added that the company is increasing its financial outlook for this year.
Activision shares jumped about 5% in aftermarket trades following the release of earnings figures.
Video games have skyrocketed during the pandemic as people staying at home to reduce the risk of infection turn to computers and the internet for entertainment.
Overall spending on video games in the United States reached $ 14.92 billion in the first quarter of this year, up 30% from the same period in 2020, according to the NPD Group market monitor.
Activision touted the performance of its Call of Duty, World of Warcraft and Candy Crush games, saying online gaming and mobile versions of the titles resonate strongly with gamers.
The company’s games, overall, drew some 435 million users per month in the last quarter, according to Activision.
“Our increased investment in our largest franchises allows us to connect and engage people in more ways than ever before,” Activision said in the earnings release.
“Despite the constant challenges of working from home, our creative and sales teams are performing very well.”
© 2021 AFP