Activision Blizzard beats expectations to post record Q3 revenues

Activision Blizzard is the latest company to post its financials for the quarter ended September 30, and the video game juggernaut has exceeded expectations. 

Looking at profit during the quarter, (GAAP) earnings per diluted share fall ever so slightly to $0.25, compared with $0.26 in Q3, 2016.

Even so, the company posted (GAAP) revenues of $1.62 billion, an increase on the $1.57 billion it pulled in last year during the same quarter, and a new Q3 record. 

It's a number that beats Activision's internal guidance estimate of $1.39 billion, and the firm believes positive performances from flagship titles like Destiny 2 along with its mobile roster drove that upward shift. 

Candy Crush Saga creator King (acquired by Activision in 2015) saw its paying player base expand for the first time since Q1 2016, while Destiny 2 became the best-selling console game in the United States. 

What's particularly interesting about Destiny 2 is that over 50 percent of game sales were digital, which is a new record for the company. Activision also set a new Q3 record by pulling in over $1 billion from in-game revenues. 

Meanwhile, existing franchises like Overwatch and Hearthstone also delivered the goods, and both saw a year-over-year increasing in monthly active users (MAU), with Overwatch now playing host to over 35 million registered players.

"This was another strong quarter. We delivered record results and impressive engagement," commented Activision CEO, Bobby Kotick. 

"With the recently released Destiny 2 off to a strong start, King's position as the number one mobile publisher in the U.S., our release of Call of Duty: WWII, and the upcoming launch of the Overwatch League, we have great momentum as we approach the end of the year.

"By investing in our franchises and communities, we continue to make progress on our efforts to connect and engage the world through epic entertainment."

Looking ahead, Activision has upwardly revised its end-of-year forecast and now expects to see (GAAP) revenues hit $6.68 billion by the end of the financial year.