Activision Blizzard Reports Significant Q1 2023 Growth Across All Business Segments
The company witnessed a 35% year-on-year increase in net revenue and an impressive 70% surge in operating income.
Activision Blizzard has released its financial results for the first quarter of 2023 reporting significant growth across various business segments.
According to the report, the company experienced a 35% year-on-year growth in net revenue, increasing from $1.77 billion generated in Q1 2022 to $2.38 billion earned during the same period this year. The boost in revenue was likely driven by the continued success of Call of Duty, preorders for Diablo IV, and another record-breaking quarter for King, the developer and publisher of Candy Crush.
Along with this, the company saw a remarkable 70% surge in operating income compared to the previous year, marking the largest increase across all business metrics.
In terms of ABK's financial results segmented by division, Activision witnessed a 28% year-over-year increase in revenue during the first quarter. The segment's operating income more than tripled from the previous year's level, which the company attributes to the growth of Call of Duty.
The Blizzard segment generated a 62% year-over-year rise in revenue during the first quarter, with growth attributed to all three games – Warcraft, Overwatch, and Diablo. The segment's operating income remained mostly stable. The company explains that it was due to higher expenses in development and marketing, such as launch investment for Diablo IV ahead of its release in the second quarter, offsetting the revenue increase.
During Q1 2023, King maintained a strong financial performance, with an 8% growth in segment revenue compared to Q1 2022. The segment's operating income remained mostly unchanged year-over-year, as higher marketing investments were made. The company anticipates that these investments are set to boost operating income growth in future quarters.
"In our 33rd year, Activision Blizzard is performing exceptionally well. Every one of our key intellectual properties continues to grow year-over-year, with Call of Duty once again a key driver of growth," Activision Blizzard CEO Bobby Kotick commented on the company's financial results. "Mobile net bookings grew double digits including another record quarter for King. Pre-sales for Diablo IV are strong."
He further stated that Activision is confident that its agreement with Microsoft is beneficial for competition, consumers, and employment opportunities in various global markets and expressed disappointment with the CMA's decision to block the acquisition, stating that the regulator's report does not align with these facts. According to Kotick, Activision intends to collaborate with Microsoft to challenge the decision through the appeal process.
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