Bobby Kotick’s Activision Blizzard 2022 Q1 Financial Results Released

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It’s already been a big 2022 for Bobby Kotick’s Activision Blizzard (NASDAQ: ATVI), and it’s just getting started. The company generated $642 million in operating cash flow for the year’s first quarter. It also confirmed upcoming updates for multiple games, including Call of Duty and World of Warcraft. According to the company, “As a member of the Fortune 500 and as a component company of the S&P 500, we have an extraordinary track record of delivering superior shareholder returns for over 30 years.”

Millions of gamers turned to the company’s many famous franchises to pass the time during the past two years of the COVID-19 pandemic. However, rising vaccination numbers brought about a slow return to pre-pandemic habits, causing gamers to spend less time playing video games. As a result, Call of Duty: Vanguard had lower premium sales while Call of Duty: Warzone had less engagement, according to the video game holding company’s 2022 Q1 recently released results.

The quarterly adjusted sales for the Santa Monica, California-based video game company that Bobby Kotick has been leading since 1991, were $1.48 billion. Activision earned 64 cents per share. In addition, it reported that the net income for the quarter ended March 31 was $395 million, which is 50 cents per share.

Bobby Kotick’s Activision Blizzard Got a Pandemic Boost

According to the financial report, “Activision Blizzard’s net revenues presented in accordance with GAAP [generally accepted accounting practices] were $1.77 billion, as compared with $2.28 billion for the first quarter of 2021. GAAP net revenues from digital channels were $1.59 billion. GAAP operating margin was 27%. GAAP earnings per diluted share was $0.50, as compared with $0.79 for the first quarter of 2021. On a non-GAAP basis, the video game holding company’s operating margin was 34%, and earnings per diluted share was $0.64, as compared with $0.98 for the first quarter of 2021.”

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The Crash Bandicoot company’s net bookings were $1.48 billion, which is down from $2.07 billion in the first quarter of 2021, which got a boost during the COVID-19 pandemic as a result of more people having more time to spend on their consoles while sheltering in place, social distancing, and working or learning from home. In contrast, the company’s in-game net booking was $1.01 billion for Q1 2022, while its monthly active users reached 372 million. 

Other Q1 highlights:

 — The Call of Duty teams implemented significant game play improvements for Warzone and Vanguard. “This year’s Call of Duty will be the most advanced experience in franchise history,” according to the company.

— King’s payer numbers grew by a double-digit percentage year over year.

— Candy Crush remained the top-grossing game franchise in United States app stores for the 19th consecutive quarter.

Activision Blizzard Update On Microsoft Merger 

Activision noted in its financial statement: “As announced on Jan. 18, 2022, Microsoft plans to acquire Activision Blizzard for $95 per share in an all-cash transaction. The transaction is subject to customary closing conditions and completion of regulatory review and Activision Blizzard’s stockholder approval. The transaction, which is expected to close in Microsoft’s fiscal year ending June 30, 2023, has been approved by the boards of directors of both Activision Blizzard and Microsoft.

“In light of the proposed transaction with Microsoft, and as is customary during the pendency of an acquisition, Activision Blizzard will not be hosting a conference call, insuring an earnings presentation, or providing financial guidance in conjunction with its first-quarter 2022 earnings release.” 

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Activision CEO Bobby Kotick says that his company “has a great relationship” with Microsoft. “They clearly were the best partner,” he’s stated. “We get a lot of great opportunities with a company like Microsoft.”