Activision Blizzard Sees A Surge In Its Revenue But Another Drop In Active s
Activision Blizzard saw a huge surge in its revenue for the second quarter of 2023 compared to the same period last year as revealed in its latest quarterly financial report. For those who haven’t been living under a rock, you probably already know where that extra cash flow came from.
The company saw a 50% increase in revenue year-over-year but a slight decrease from the first quarter of the year. The majority of that revenue increase came from Blizzard side of the company thanks to Diablo 4 pre-orders.
“For the quarter ended June 30, 2023, Activision Blizzard’s net revenues presented in accordance with GAAP were $2.21 billion, as compared with $1.64 billion for the second quarter of 2022,” reads the report. “AAP net revenues from digital channels were $2.01 billion. GAAP operating margin was 26%. GAAP earnings per diluted share was $0.74, as compared with $0.36 for the second quarter of 2022. On a non-GAAP basis, Activision Blizzard’s operating margin was 32% and earnings per diluted share was $0.91, as compared with $0.48 for the second quarter of 2022.”
Activision Blizzard, however, saw another decrease in its monthly active s (MAUs) which dropped from 368 million in Q1 2023 to 356 million in Q2 2023 in sharp contrast to its 2022 holiday peak of 389 million. Blizzard’s MAUs are expected to grow this quarter though with the studio touting 10 million players for Diablo 4, although the studio its that Overwatch 2’s playerbase has been “declining sequentially” since the last quarter.
Meanwhile, Activision Blizzard is preparing for its potential merger with Microsoft and will be publishing an earnings presentation and hosting a conference call with its investors ahead of the buyout. It’s also worth noting that the deadline for the merger has been extended from July 18th to October 18th but with a higher termination fee. The extension was likely agreed upon following the US District Court’s refusal to grant the FTC its preliminary injunction and the UK Competition and Markets Authorities’ willingness to continue negotiations.
here's Xbox chief Phil Spencer's email to Microsoft employees about the Activision Blizzard deal extension https://t.co/6TOHZJfOwn pic.twitter.com/I9mdxgjORY
— Tom Warren (@tomwarren) July 19, 2023
