Activision Blizzard Reports Quarterly Profit of $508M and Annual Profits of $2.2B

Video game holding company Activision Blizzard published its financial earnings for the fourth quarter and full-year 2020. The company generated quarterly net revenues of $2.41B USD, up 21.5% compared to $1.99B during the same period of 2019. For the full-year 2020, Activision Blizzard recorded net revenues of $8.1B, which marks an increase of 25% year-over-year.

In total, the company recorded a quarterly net income of $508M or $0.66 earnings per share (EPS), down 3% compared to $625M in Q4 2019. For its full fiscal year, the company reported a net income of $2.2B, an increase of 46% year-over-year from $1.5B in its fiscal year 2019.

The video game holding company reported key performance indicators for its three business segments, Activision Publishing (console games), Blizzard Entertainment (PC games), and King (mobile games). Spread over all its assets, the company reported a player base of over 397M players during Q4, down 3% year-over-year.

Activision had 128M monthly active users (MAUs) in the fourth quarter, mostly driven by its Call of Duty series player base. The business generated roughly 69% of Activision Blizzard’s total Q4 revenues at $1.66B, up 16% year-over-year, and an operating profit of $780M at a 47% operating margin. For the full-year of 2020, Activision generated segment revenues of $3.94B, up 78% year-over-year – with Call of Duty revenues roughly doubling – and a segment operating profit of $1.87B at a 47% operating margin.

Blizzard had MAUs of 29M for the Q4 period and generated revenues of $579M, slightly decreasing year-over-year as revenue growth for World of Warcraft was offset by a decline of other titles and the absence of BlizzCon. The segment’s operating income for Q4 was $160M at an operating margin of 28%, which slightly decreased year-over-year primarily due to increased marketing investments and amortization of development costs for World of Warcraft’s eighth expansion Shadowlands. For the full year of 2020, Blizzard generated segment revenues of $1.91B, up 11% year-over-year, and a segment operating profit of $693B, up 49% year-over-year, at a 36% operating margin.

King reported 240M MAUs and generated revenues of $577M for Activision Blizzard during the quarter. The segment’s quarterly revenues increased by 15% year-over-year, while its annual revenues grew by 7% to $2.16B. King’s quarterly operating profit was $242M, with an operating margin of 42%, while its annual operating profit was $857M, with an operating margin of 40%.


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