Activision Blizzard's Revenue Dropped by $660 Million in Q2 2022
The company reports significant drops in revenues across its Activision and Blizzard segments. King was the only segment that saw quarterly growth.
Activision Blizzard has released its financial results for the second quarter of 2022. According to the report, the company's net revenues amounted to $1.64 billion which reflects a 28% decrease from the net revenue generated over the same period the year earlier.
The major part of Activision's net revenues was delivered by in-game purchases and subscriptions ($1.34 billion), while product sales brought the company $304 million.
Operating income in the quarter was $338 million which shows a significant decline from Q2 2021 when this figure reached $959 million. Net income also decreased from $876 million in the previous year to $280 million. The number of monthly active users in the quarter amounted to 361 million which also shows a decline from 408 MAUs in the same period last year.
King was the only segment that saw a growth in both revenue and operating income – its financial success was driven by its largest franchise, Candy Crush. Meanwhile, Activision and Blizzard's financial results dropped noticeably.
The company attributes the decline in net revenues and operating income of the Activision segment to lower engagement for the Call of Duty series.
Activision Blizzard reported that it was pleased with the results of the Diablo Immortal launch noting that the game ranked in the top-10 grossing games in the US app stores in June and shared that more than half of the accounts in the game belong to players who are new to Blizzard games.
Despite a severe decline compared to 2021, Activision Blizzard's quarterly results are in line with analysts' expectations, and the company is confident that numbers will improve with new releases in the second half of 2022. At the end of the year, the company will open early access to Overwatch 2 and release Modern Warfare II, Warzone 2.0, Wrath of the Lich King Classic, and World of Warcraft: Dragonflight.
