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.”