Remember in February when Activision-Blizzard posted record high financials but followed it up with a devastating round of layoffs? And then remember when the first quarter numbers arrived in May, showing that the company had seen dropping revenues? I’m afraid the news isn’t much better for Q2 2019, as revenues are down year over year and quarter over quarter once again.
“For the quarter ended June 30, 2019, Activision Blizzard’s net revenues presented in accordance with GAAP were $1.40 billion, as compared with $1.64 billion for the second quarter of 2018. GAAP net revenues from digital channels were $1.09 billion. GAAP operating margin was 24%. GAAP earnings per diluted share were $0.43, as compared with $0.52 for the second quarter of 2018.”
CEO Bobby Kotick once again is quoted as saying quarterly results exceeded the company’s outlook and promises that “in the first half of 2019 [Acti-Blizz has] prioritized investments in [its] key franchises and, beginning in the second half of this year [its] audiences will have a chance to see and experience the initial results of these efforts.” Specifically of interest to us, Warcraft, Hearthstone, Overwatch, and Diablo are mentioned as beneficiaries of expanded development teams for accelerating content production.
As for Blizzard itself, the subcompany counted 32M monthly active users for the quarter, same as last quarter but down 3M from where it ended 2018. WoW subs are up too (wouldn’t it be worrisome if they weren’t?).
“Blizzard had 32 million MAUsC. Hearthstone MAUsC grew quarter-over-quarter following the release of the Rise of Shadows™ expansion and The Dalaran Heist single-player Adventure. Overwatch MAUsC were relatively stable quarter-over-quarter, with engagement increasing following the release of the Workshop. Subscribers in World of Warcraft® increased since mid-May, following the release date announcement and beta for World of WarcraftClassic and the Rise of Azshara™ content update. […] Hearthstone net bookingsB grew sequentially in Q2 following the release of Rise of Shadows and the introduction of the paid single-player Adventure, with the expansion also outperforming last Q4’s Rastakhan’s Rumble™.”