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Activision Beats the Street, With Digital Taking 76 Percent of Sales

That's a big difference from the holiday quarter, where retail represented the majority.

Activision / Call of Duty: Advanced Warfare

In the quarter that ended in March, game publisher Activision Blizzard turned in $394 million in profit, or earnings of 16 cents per share, on sales of $703 million. That’s ahead of what the Street was expecting — per-share earnings of seven cents on sales of $655 million.

However, the company forecast that next quarter’s earnings will come in at seven cents per share rather than the nine cents analysts had been anticipating. Activision shares dipped slightly after hours, down just over a percent.

The company had previously warned that 2015 would be a rockier year than 2014, with fewer big game launches and a projected contraction of annual revenue from $4.8 billion to $4.4 billion. It raised that outlook very slightly today to $4.43 billion, and nudged projected earnings per share up from $1.15 to $1.20.

In the most recent quarter, 76 percent of Activision Blizzard’s revenue came from digital channels, while 17 percent came from retail. That’s a big difference from the holiday quarter preceding it, in which digital accounted for only a third of the total. In the same post-holiday quarter one year ago, digital represented 68 percent of the total.

PC sales plummeted 47 percent year over year, to $127 million, while console sales rose 55 percent to $232 million. Mobile inched up 5 percent, to $87 million.

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