Video game giant Activision Blizzard ATVI reported fourth-quarter and full fiscal year financial results after the market close Monday. Here are the key highlights.
What Happened: Activision Blizzard reported fourth-quarter GAAP net revenue of $2.33 billion, down from $2.16 billion year-over-year. Fourth-quarter net bookings were $3.57 billion, up 43% year-over-year and marking a new quarterly record for the company.
The bookings came in ahead of a Street estimate of $3.16 billion, according to data from Benzinga Pro.
The company said mobile net bookings in the fourth quarter were up “mid-teens” year-over-year. In-game net bookings of $1.82 billion were up 46% year-over-year in the fourth quarter.
Activision Blizzard ended the fourth quarter with 389 million monthly active users.
“We ended 2022 with record quarterly net bookings as we delivered on our mission to bring epic joy to players,” Activision Blizzard CEO Bobby Kotick said.
For the full year, GAAP net revenue was $7.53 billion for Activision Blizzard. Full-year net bookings were $8.51 billion for the company.
The company’s “Call of Duty: Modern Warfare II” had the highest opening-quarter sell-through in franchise history. The company’s Blizzard segment posted its highest quarterly net bookings ever, with growth in the Overwatch, Diablo and Warcraft franchises mentioned in the report.
Activision segment revenue was up 60% year-over-year in the fourth quarter, led by “Call of Duty: Modern Warfare II.” Hours played for the title were the highest in franchise history for a premium title at this stage of release.
Bookings for “Call of Duty Mobile” were up by double digits in the fourth quarter.
Blizzard segment revenue was up 90% year-over-year in the fourth quarter. World of Warcraft saw strong year-over-year growth led by the September and November releases of “Wrath of the Lich King” and “Dragonflight,” respectively. The company also highlighted the mobile title “Warcraft: Arclight Rumble” as progressing well in regional testing.
“Overwatch 2” was released in October with a free-to-play model. The company said it led to the highest quarterly figures for players and hours played in the franchise’s history.
King, which is the mobile unit of the company, saw revenue up 6% year-over-year. Bookings were up 9% in the fourth quarter, led by the Candy Crush franchise, which is one of the top grossing game franchises of all-time.
Related Link: Trading Strategies For Activision Blizzard Stock Before And After Q4 Earnings
What’s Next: Activision Blizzard is guiding for high teens year-over-year growth for revenue and high-single digit growth year-over-year for net bookings for 2023. In the first quarter, the company sees revenue hitting growth in the high teens. First-quarter net bookings are expected to be up in the mid-teens on a year-over-year basis.
“Our robust product pipeline, live game opportunity, and ongoing focus on operational discipline create a foundation for strong financial performance in 2023,” the company said.
Activision shared a brief update on its pending acquisition by Microsoft Corporation MSFT, which values the company at $95 per share.
“The two parties are continuing to engage with regulators reviewing the transaction and we are working toward closing it in Microsoft’s fiscal year ending June 30, 203, subject to obtaining required regulatory approvals and satisfaction of other customary closing conditions,” the company said.
Activision CEO Kotick added additional commentary on the pending transaction.
“We look forward to a historic year, as we work toward merging with Microsoft. This merger will enable us to better serve our players, create greater opportunities for our employees, and allow us to succeed in an increasingly competitive global gaming industry,” Kotick said.
ATVI Price Action: Activision shares are trading up 0.5% to $71.90 in after-hours trading Monday versus a 52-week trading range of $70.94 to $82.
Read Next: Video Game Earnings Streaming After The Bell: What To Expect From Activision, Take-Two
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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