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Activision Blizzard Misses Q4 2018 Earnings Expectations

Activision Blizzard misses Q4 2018 earnings expectations. On Tuesday, an American video game company reported mixed fourth-quarter results and lowered expectations for the first half of 2019.

Now, the company has started long-rumored layoff process and informed workers that it will be cutting staff. According to a report, the company could eliminating 8% of its staff. Shares fell as much as 5 percent after Activision Blizzard released results.

The company reported adjusted earnings per share of $1.29 on revenue of $2.84 billion, compared with analysts expectation of $3.04 billion in revenue.

Activision Blizzard now estimates earnings per share of 20 cents for its first-quarter on $1.18 billion in revenue , Refinitiv expected EPS of 46 cents on revenue of $1.45 billion for first quarter of 2019.

in addition, Activision Blizzard projects earnings of $2.10 per share on revenue of $6.30 billion, while analyst’s estimates expects earnings of $2.54 per share on revenue of $7.25 billion.

Net booking is projected to decline to $6.30 billion in 2019, compared to $7.26 billion during 2018 and down from $7.16 billion during 2017.

“In-game execution was inadequate in some of our franchises, and we saw weaker-than-anticipated retail demand,” Coddy Johnson, Activision’s operating chief, said on the company’s earnings call. “Our 2019 outlook assumes that we will not improve in-game monetization as quickly as we would like and that it is a transition year where we have less new major content to release than we should.”

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Apurva Nagare

Apurva Nagare

Apurva Nagare works as a web content writer. She has been working with writing challenged clients for numerous years. She pays attention to small things like effective variations in sentence length, impressive word choice, and sentence rhythms when writing. Providing fresh and high-quality content are two aspects of her work. She takes an interest in communication as a hobbyist. Creativity is her specialty, and it’s what allows her to create unique content.