ATVI Q1 FY22 Earnings Report Recap

Here is a very quick recap of what you need to know from the Activision Blizzard Q1 FY2022 Earnings Report.

Overall Net Revenue was down year on year with 1.77 billion down from 2.28 in FY21. Out of the total revenue almost 60 percent came from in game purchases such as Battle Passes, cosmetics and DLC.

The reasons given for the underperforming quarter was that Call of Duty Vanguard didn’t met expectations even though it was the best selling game in 2021 and is still the 5th best selling game of the year. The report also citied product timing for Blizzard with lack of releases. These reasons offset robust growth from their mobile division King.

King showed 8 percent year on year growth with Candy Crush being the top grossing franchise in the App Store for the 19th consecutive quarter. The company clearly understand the value of mobile gaming moving forward with Diablo Immortal releasing on June 2, which was just announced to be a PC title as well. For all the backlash the title received, it has over 30 million players already pre-registered.

Looking forward things look good with Diablo 4 and Overwatch 2 in the pipeline for Blizzard and Call of Duty looking to make a return to form this year with Infinity Ward. Modern Warfare 2 will be the sequel to the 2019 title which is the best selling cod ever, and is being developed at the same time as Warzone 2 from the ground up featuring ground breaking innovations soon to be revealed.

Finally and most importantly, shareholders voted in a landslide for the Microsoft acquisition with a 98% approval.