ATVI Activision Blizzard Inc

By Maria Armental 

Videogame companies Activision Blizzard Inc. and Electronic Arts Inc. reported strong results for the March quarter, helped by people looking for entertainment options and social connections while at home during the pandemic.

EA saw an early boost in sales of digital and physical games, presumably before stores started closing, the company's operating and finance chief, Blake Jorgensen, said. The momentum has continued and digital sales remain strong, he added.

EA also got a lift from sports, he said, with FIFA and Madden tournaments drawing strong crowds.

Madden NFL 20 reached the highest engagement levels in franchise history, the company said Tuesday.

EA, whose financial results in the year that ended March 31 got a boost from one-time tax benefits recognized during the period, reported a profit of $418 billion, or $1.43 a share, for the company's fourth quarter.

Revenue rose to $1.39 billion from $1.24 billion a year earlier.

This year, the Redwood City, Calif.-based company expects to make $3.35 a share in profit on $5.53 billion in revenue.

Santa Monica, Calif.-based Activision raised financial projections for the year, citing the strong start for the company's first quarter with profit rising to $505 million, or 65 cents a share, though revenue fell to $1.79 billion from $1.83 billion a year earlier. Still, revenue came in stronger than the company had projected.

Momentum continued into the current quarter, accelerating in April, Activision said.

The company now expects $2.22 a share in profit this year, or $2.62 a share on an adjusted basis, on $6.8 billion in revenue. It previously projected $1.85 a share, or $2.22 a share as adjusted, on $6.45 billion in revenue.

Activision Chief Executive Bobby Kotick said content releases remain on schedule this year, despite any disruptions from the coronavirus pandemic.

"The digital nature of our content means our creative talent can continue to work on our product pipeline from home," Mr. Kotick said in a statement.

He said that Activision remains in hiring mode, boosted by strong demand, and estimates the company would need to hire some 2,000 workers in production and development over the next 12 months.

Similarly, Mr. Jorgensen said EA would also continue to hire and focus on "keeping the team together."

While the pandemic hasn't hurt business thus far, Mr. Jorgensen said company executives are mindful that could change as people start to go out again, likely spending more on restaurants, movie theaters and concerts that reopen as lockdown orders are eased.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

May 05, 2020 19:15 ET (23:15 GMT)

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