Activision Blizzard Q1 Profit Surges; Says CMA's Decision Disproportionate

(RTTNews) - Activision Blizzard, Inc. (ATVI) Wednesday announced a surge in first-quarter net profit, supported by an increase in revenue, compared to the prior year. The net bookings grew 25 percent, while mobile net bookings increased double-digit year-over-year.

The quarterly earnings increased to $740 million from $395 million in the prior year. Earnings per share were $0.93, up from $0.50 last year. On an adjusted basis, earnings were $1.09 per share.

Commenting on the United Kingdom Competition and Markets Authority or CMA's decision to block the merger with Microsoft, Activision said the decision is disproportionate, irrational, and inconsistent with the evidence.

Microsoft has announced its decision to appeal the CMA's ruling, and Activision Blizzard intends to support this appeal. Further, the companies plan to engage with other regulators reviewing the transaction to obtain any required regulatory approvals.

Currently, shares of ATVI are down 11.42 percent on a volume of 38,311,311.