Activision Blizzard Reports Strong Second-Quarter Sales

By Will Feuer

Activision Blizzard, the popular videogame developer known for its franchises such as Call of Duty and Candy Crush, has announced impressive financial results for the second quarter of this year. The company reported a 34% increase in sales, driven by the successful launch of Diablo IV and the continued growth of its flagship Call of Duty series.

Strong Financial Performance

Activision Blizzard recorded a second-quarter profit of $587 million, or 74 cents per share, compared to $280 million, or 36 cents per share, in the same period last year. When excluding one-time fees such as stock-based compensation and merger-related costs, adjusted earnings per share came to 91 cents. This exceeded the expectations of analysts surveyed by FactSet, who were anticipating adjusted earnings of 88 cents per share.

Impressive Sales Growth

The company’s total sales climbed to $2.21 billion from $1.64 billion last year. Despite falling short of the projected sales of $2.38 billion, the 34% increase demonstrates the growing popularity and demand for Activision Blizzard’s games. Additionally, bookings for the second quarter reached $2.46 billion, a significant jump from $1.64 billion in the same period last year.

Segment Performance

Within the Activision segment, sales experienced a solid 17% growth, while operating income saw a remarkable increase of over 80%. These positive results were largely attributed to the ongoing success and expansion of the Call of Duty franchise.

The Blizzard segment also performed exceptionally well, with revenue soaring over 160% and operating income more than tripling. This significant growth was driven by the highly-anticipated launch of Diablo IV.

Even the King segment, responsible for popular mobile games like Candy Crush, contributed to Activision Blizzard’s success by achieving a revenue growth of 9%.

Overall, Activision Blizzard’s strong second-quarter performance shows its ability to generate substantial sales and profits, further solidifying its position in the interactive entertainment industry.