Activision Blizzard’s Q1 Results Miss Expectations
Activision Blizzard, Inc. (NASDAQ:ATVI) reported its Q1 results, with EPS coming in at $0.64, missing the Street estimate of $0.70. Revenue was $1.77 billion, compared to the Street estimate of $1.8 billion.
The quarter was highlighted by the company’s most prestigious console/PC operations declining 40% year-over-year, but its mobile franchises being either flat or up double-digits year-over-year, against negative industry trends.
The company also made a surprise announcement that its upcoming mobile game Diablo Immortal will be available on PC, supporting cross-play and cross-progression.
| Symbol | Price | %chg |
|---|---|---|
| 259960.KS | 340500 | 1.76 |
| 7974.T | 8019 | 0.31 |
| 251270.KS | 56000 | -4.46 |
| 036570.KS | 193100 | 1.66 |
Activision Blizzard Review by Berenberg Bank
Analysts at Berenberg Bank provided their views on Activision Blizzard, Inc. (NASDAQ:ATVI) following the disappointment of the Call of Duty: Vanguard launch in November.
The company’s Q4/21 results were particularly disappointing, with net bookings of $2.9 billion, falling 12% short of Street estimates and adjusted EPS of $1.25 coming in 4.6% short of expectations. Given the acquisition process that is underway with Microsoft, no guidance was given for the full 2022-year.
The company’s management has taken the decision not to release a new Call of Duty in 2023 – the first year since 2005 that a new iteration of the franchise has not been released. The plan is to give this year’s planned Modern Warfare release a longer tail, driving more in-game revenue while ensuring Warzone engagement is not cannibalizing unit sales for a new release.
