Activision-Blizzard Q4 2020: Activision’s revenues are up QoQ and YoY as Blizzard MAUs fall once again

Activision-Blizzard Q4 2020: Activision’s revenues are up QoQ and YoY as Blizzard MAUs drop again

We’ve merely surely got to stop fulfilling similar to this precisely every 3 months. Yes, it is time for the next round of Activision-Blizzard dissembling in the shape of the ongoing company’s investor report and conference call. Welcome to Q4 2020! It’s been a couple that is weird of for the business as 2019 saw mass layoffs, the Blitzchung boycott, a weak BlizzCon, and plunging YOY profits for five right quarters in might 2019, August 2019, November 2019, February 2020, and May 2020. Q1 2020’s revenue fall ended up being really small and near flattening, then in Q2, profits for the business had been up for the time that is first six quarters, largely due to COVID-19 lockdowns. Q3 saw those revenues hold steady.

Revenues in Q4, as it happens, are up again – 17% in fact, a result that is better-than-expected

“For the season finished December 31, 2020, Activision Blizzard’s internet revenues presented in respect with GAAP had been $8.09 billion, when compared with $6.49 billion for 2019. GAAP revenues that are net digital channels were $6.66 billion. GAAP margin that is operating 34%. GAAP earnings per diluted share had been $2.82, when compared with $1.95 for 2019. On a basis that is non-GAAP Activision Blizzard’s operating margin was 39% and earnings per diluted share were $3.21, as compared with $2.31 for 2019.

“For the quarter ended December 31, 2020, Activision Blizzard’s net revenues presented in accordance with GAAP were $2.41 billion, as compared with $1.99 billion for the fourth quarter of 2019. GAAP revenues that are net electronic stations had been $1.87 billion. GAAP margin that is operating 25%. GAAP earnings per diluted share were $0.65, as compared with $0.68 for the quarter that is fourth of. On a basis that is non-GAAP Activision Blizzard’s operating margin was 31% and earnings per diluted share were $0.76, as compared with $0.62 for the fourth quarter of 2019.”

Acti-Blizz Attributes a complete lot for the leads to Call of Duty, World of Warcraft, and Candy Crush as always and talks up development in 2022+.

As for Blizzard particularly, it’s a thing that is good*)WoW is doing well because WoW’s numbers are up thanks to Classic and Shadowlands even as Blizzard’s overall MAUs keep on dropping and the press release doesn’t even namedrop Hearthstone, Overwatch, or Diablo III/IV.To put that in context, Blizzard has lost almost a quarter of its overall playerbase in three years, as measured by Blizzard’s own preferred monthly user that is active.

38M in Q1 2018

37M in Q2 2018
37M in Q3 2018 (BFA)
35M in Q4 2018 (mass layoffs)
32M in Q1 2019
32M in Q2 2019
33M in Q3 2019 (WoW Classic)
32M in Q4 2019 (Blitzchung)
32M in Q1 2020 (COVID-19)
32M in Q2 2020 (COVID-19)
30M in Q3 2020 (COVID-19)
29M in Q4 2020 (this quarter)
We’ll be upgrading using the important-to-us bits through the seminar call below since it rolls on.

Updates through the seminar call

• Bobby Kotick is investing a part that is large of introduction talking up the company’s support for veterans, women, and minorities.

• Kotick teases
Diablo 4 a bit, saying it’s “on the horizon.” Overwatch 2 too. And he promises “more frequent premium content” for the Warcraft franchise.• Activision says Classic helped buffer
WoW between expansions and is suggesting the game and franchise will expand to “more platforms than ever before.” (Not sure what this means – hoping an analyst asks about this. A chunk was spent by the company for the Blizzard area vaguely speaking up mobile.)• Activision is talking up reach and subs for
WoW and Shadowlands, saying internet bookings had been up 40% because this time this past year, its level that is highest in almost 10 years.
Diablo Immortal is apparently still on track to launch this year, though it sounds like it’ll be the tail end of the year at best (the company isn’t incorporating revenues from the game in its 2021 outlook).
Overwatch 2 is still be worked on as one of the multiple 2022+ pipeline titles.• Blizzard revenue by itself fell to $579M, which Blizzard attributes to a decline in non-WoW games and the cancelation of BlizzCon. But revs were still up 11% for the year.

Diablo IV and Overwatch 2 are NOT coming in 2021.• Activision is saying that in some of its more social titles (like
WoW), player engagement has stayed high even as COVID lockdowns are reduced.• Another hint about upcoming “remastered content” – presumably a reference to
Diablo II.• J. Allen Brack is asked about WoW content and growth. He covers just how Classic and Retail are particularly playerbases that are different. They’re very happy with Shadowlands’ quality and numbers and the “momentum” of the engagement is still up a months that are few launch. Brack fundamentally states Blizzard is handling both playerbases and can have significantly more to share with you (BlizzConline is coming, most likely). Absolutely nothing tangible in right here at all.

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