Activision Blizzard has released its Q1 2021 financial results, reporting strong revenue growth and beating Wall Street’s earnings per share (EPS) estimates. The video game developer’s net revenues were $2.28 billion, up 27% from the same period last year, and its operating margin was 38%. All three of Activision Blizzard’s business segments saw revenue growth during Q1, and the company expects net revenues of $8.37 billion for the full year. The company also announced plans to release several new games in the upcoming months, including World of Warcraft: Classic, Diablo II: Resurrected, and Call of Duty: Black Ops Cold War.
Activision Blizzard Announces Strong Q1 Financial Results
Overview
Activision Blizzard, a leading video game developer, has released its financial results for Q1 2021. The company reported strong revenue growth and exceeded expectations with its earnings per share (EPS).
Financial Highlights
- Net revenues were $2.28 billion, up 27% from the same period last year.
- EPS was $0.84, beating Wall Street’s estimate of $0.70.
- Activision Blizzard’s stock increased by more than 6% following the announcement.
- The company’s operating margin was 38%.
Business Segments
Activision Blizzard operates in three main business segments:
- Activision Publishing – the segment responsible for popular franchises such as Call of Duty and Skylanders.
- Blizzard Entertainment – known for games such as World of Warcraft and Overwatch.
- King – a mobile gaming company responsible for games such as Candy Crush Saga and Farm Heroes Saga.
All three segments saw revenue growth during Q1:
- Activision Publishing had net revenues of $772 million, up 72% from the same period last year.
- Blizzard Entertainment had net revenues of $485 million, up 7% from the same period last year.
- King had net revenues of $609 million, up 22% from the same period last year.
Commentary from CEO
CEO Bobby Kotick expressed optimism about the company’s future in a press release:
“Our continued overperformance enables us to invest in our communities and our employees and pursue further growth opportunities.”
Future Outlook
Activision Blizzard provided guidance for Q2 2021 and the rest of the year:
- The company expects net revenues of $2.15 billion for Q2.
- Activision Blizzard is projecting net revenues of $8.37 billion for the full year.
- The company also announced plans to release several new games in the upcoming months, including World of Warcraft: Classic, Diablo II: Resurrected, and Call of Duty: Black Ops Cold War.
Conclusion
Activision Blizzard’s strong Q1 financial results provide a positive outlook for the company’s future. With continued growth across all three business segments and plans for several new game releases, Activision Blizzard remains one of the most prominent players in the video game industry.