Activision Blizzard, Inc. (NASDAQ:ATVI) stock rose 0.26% (As on Feb 4, 12:10:12 AM UTC-4, Source: Google Finance) after the company reported earnings and revenue that missed analysts’ estimates just weeks after Microsoft Corp. announced its $69 billion acquisition of the video game publisher. Revenue in Activision’s mobile games division rose 18% in the quarter, reflecting solid growth in net bookings in Candy Crush and Call of Duty Mobile. Net bookings, a measure of sales of virtual goods and licensing fees, in Call of Duty Mobile “grew strongly” in 2021, driven by demand from China. Worldwide spending on the title exceeds $1 billion. Candy Crush in-game spending grew 20% from a year earlier, making it the top grossing game franchise in U.S. app stores. Activision’s Blizzard division is planning “substantial new content” for its Warcraft franchise, including “all-new mobile Warcraft content.” In 2018, Kotaku reported that a Warcraft take on Pokemon Go may be in the works. Revenue from consoles fell 31% from a year earlier and and PC gaming dropped 12%. The Microsoft deal has sparked concern that Activision will begin favoring the Xbox console over Sony Group Corp.’s PlayStation. But Activision plans to release at least the next three games in its mainstay Call of Duty franchise on the PlayStation.

ATVI in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.25, beating the analysts’ estimates for the adjusted earnings per share of $1.31. The company had reported 18 percent fall in the adjusted revenue to $2.49 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $2.84 billion, according to an average of estimates compiled by Bloomberg. For the year ended December 31, 2021, Activision Blizzard’s net bookings were $8.35 billion, as compared with $8.42 billion for 2020. In-game net bookings were $5.10 billion, as compared with $4.85 billion for 2020. For the quarter ended December 31, 2021, Activision Blizzard’s net bookings were $2.49 billion, as compared with $3.05 billion for the fourth quarter of 2020. In-game net bookings were $1.24 billion, as compared with $1.32 billion for the fourth quarter of 2020. For the quarter ended December 31, 2021, overall Activision Blizzard Monthly Active Users (MAUs) were 371 million. For the quarter, operating cash flow was $661 million, as compared with $1.14 billion for the fourth quarter of 2020. Cash and short-term investments at the end of the fourth quarter stood at $10.6 billion, and Activision Blizzard ended the quarter with a net cash position of approximately $7.0 billion.