Activision Blizzard reported first-quarter revenue of $1.8 billion Monday, in line with Wall Street expectations, though below its first-quarter results of $2.3 billion from 2021.
The video game publisher recorded net bookings of $1.5 billion for the quarter ended March 31, 2022, down from $2.1 billion in the same quarter of 2021. In-game net bookings came in at $1.1 billion, below $1.34 billion a year earlier.
Earnings per share came in at $0.50, below the $0.79 reported in the first quarter of 2021.
The company attributed its weaker performance to lower numbers for Call of Duty and the product cycle timing at Blizzard. Activision Blizzard also faced increased legal and professional fees due to the company’s planned sale to Microsoft. The company hired “several hundred people” in the first quarter, according to the press release, adding to increased expenses.
Activision did not issue its own earnings expectations for the current second quarter, but said it expects “renewed expansion” in the fourth quarter and going forward. It does not plan to issue guidance moving forward, due to its anticipated merger with Microsoft. Microsoft is scheduled to report its third-quarter earnings on Tuesday.
On Jan. 18, Microsoft announced plans to acquire Activision Blizzard for $95 a share, or $68.7 billion. That deal is expected to close in Microsoft’s fiscal year ending June 30, 2023, pending regulatory and shareholder approval.
Shares of Activision Blizzard were unchanged in pre-market trading.