Activision-Blizzard has seen a decline in monthly active users, with Diablo 3 and Overwatch being the biggest factors. The company’s revenue is holding up, but the losses are piling up for Blizzard Entertainment as players migrate to other games.

Activision-Blizzard Q4 2021: Blizzard lost another 2M monthly actives as ABK revenue holds steady is a blog post about Activision-Blizzard’s quarterly earnings. The article discusses the financial results for Activision-Blizzard and how they are doing in comparison to their competitors.

Activision-Blizzard Q4 2021: Blizzard lost another 2M monthly actives as ABK revenue holds steady

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We’ve returned to our usual coverage of Activision-quarterly Blizzard’s earnings. As readers are aware, the company, its leadership, and its games have been the target of much-deserved criticism and scrutiny in recent years, following multiple rounds of mass layoffs, the Blitzchung boycott, exorbitant C-suite payouts, shady stock deals and votes, rejected diversity proposals, abusive compensation, labor uprisings, a mass exodus of veteran developers, plummeting playerbases, over a year of plunging YOY revenues prior to COVID We’re dealing with pipeline issues, missing BlizzCon, and Blizzard missing WoW’s two-year expansion cycle for the first time ever, as well as Overwatch 2 and Diablo IV being delayed.

Every quarter, the list grows longer, and the news that Microsoft is purchasing Activision-Blizzard for $68.7 billion and keeping Kotick on board until at least mid-2023 has just added to it. This announcement also caused a significant stock rally.

We have the Q4 figures, which include October, November, and December 2021, as of this afternoon. Overall, Activision-Blizzard witnessed a little gain from the previous quarter, but a tiny reduction from Q4 2020, but the year is up slightly over 2020. Basically, the firm is breaking even and is profitable for the whole year.

“Activision Blizzard’s net sales provided in accordance with GAAP for the year ended December 31, 2021 were $8.80 billion, compared to $8.09 billion in 2020. Net sales from digital channels were $7.66 billion according to GAAP. The GAAP operating margin was 37%. In GAAP terms, profits per diluted share were $3.44, up from $2.82 in 2020. Activision Blizzard’s non-GAAP operating margin was 44 percent, with profits per diluted share of $4.08, up from $3.21 in 2020.

“Activision Blizzard’s net sales provided in accordance with GAAP for the quarter ended December 31, 2021 were $2.16 billion, compared to $2.41 billion in the fourth quarter of 2020. Digital channels generated $1.78 billion in GAAP net sales. The GAAP operating margin was 32%. In the fourth quarter of 2020, GAAP profits per diluted share were “For the quarter ended December 31, 2021, Activision Blizzard’s net revenues presented in accordance with GAAP were $2.16 billion, as compared with $2.41 billion for the fourth quarter of 2020. GAAP net revenues from digital channels were $1.78 billion. GAAP operating margin was 32%. GAAP earnings per diluted share was $0.72, as compared with $0.65 for the fourth quarter of 2020. On a non-GAAP basis, Activision Blizzard’s operating margin was 45% and earnings per diluted share was $1.01, as compared with $0.76 for the fourth quarter of 2020..72, up from “For the quarter ended December 31, 2021, Activision Blizzard’s net revenues presented in accordance with GAAP were $2.16 billion, as compared with $2.41 billion for the fourth quarter of 2020. GAAP net revenues from digital channels were $1.78 billion. GAAP operating margin was 32%. GAAP earnings per diluted share was $0.72, as compared with $0.65 for the fourth quarter of 2020. On a non-GAAP basis, Activision Blizzard’s operating margin was 45% and earnings per diluted share was $1.01, as compared with $0.76 for the fourth quarter of 2020..65 in the previous quarter. Activision Blizzard’s non-GAAP operating margin was 45 percent, with profits per diluted share of $1.01, up from “For the quarter ended December 31, 2021, Activision Blizzard’s net revenues presented in accordance with GAAP were $2.16 billion, as compared with $2.41 billion for the fourth quarter of 2020. GAAP net revenues from digital channels were $1.78 billion. GAAP operating margin was 32%. GAAP earnings per diluted share was $0.72, as compared with $0.65 for the fourth quarter of 2020. On a non-GAAP basis, Activision Blizzard’s operating margin was 45% and earnings per diluted share was $1.01, as compared with $0.76 for the fourth quarter of 2020..76 in the fourth quarter of 2020.

“Activision Blizzard earned $2.41 billion in operational cash flow in fiscal year 2021, compared to $2.25 billion in fiscal year 2020. Operating cash flow for the quarter was $661 million, compared to $1.14 billion in the fourth quarter of 2020.”

$2.163 billion in ABK Q4-21 Q3-21 ABK: $2.07B Q4-20 ABK: $2.41B ABK 2021: $8.80 billion ABK 2020: $8.09 billion dollars

Blizzard’s fourth quarter revenue was $419 million. Blizzard: $493M in Q3-21 Blizzard’s Q4-20 revenue was $579 million. $1.827 billion in Blizzard 2021 Blizzard 2020 will cost $1.905 billion.

Q4-21 Blizz MAUs: 24M Q3-21 Blizz MAUs: 26M MAUs for Blizz in Q4-20: 29M Q1-19 Blizz MAUs: 32M Q1-18 Blizz MAUs: 38M

Of course, Blizzard had no new releases during the quarter to rely on for revenue or player growth; ABK claims that “World of Warcraft reach and engagement continues to benefit from the merging of the Modern game and Classic under a single subscription,” which means nothing. Indeed, the report echoes last quarter’s language, claiming that “World of Warcraft generated its greatest engagement and net bookings outside of a Modern expansion year in a decade,” ignoring the reality that WoW Classic did have an expansion and that Blizzard games lost large MAUs last year. The company promises “substantial new content” for the WoW franchise this year, which we can assume is the Eternity’s End update and its major mechanics changes, as well as a teaser for the mobile Warcraft game that we’ve long known was in the works, but there’s nothing more concrete, and there’s no mention of the missing WoW Retail expansion that we’d expect to see announced in 2021 for 2022.

“Within the Warcraft brand, the combination of the Modern game and the Classic game under a single subscription continued to boost fourth-quarter World of Warcraft reach and engagement.” Outside of a Modern expansion year, World of Warcraft had its best engagement and net bookings in a decade in 2021. Hearthstone’s net bookings increased year over year in the fourth quarter, thanks to a consistent stream of new content. In 2022, Blizzard plans to release a slew of new material for the Warcraft property, including new World of Warcraft and Hearthstone experiences, as well as the first-ever mobile Warcraft content. Hearthstone’s net bookings increased year over year in the fourth quarter, thanks to a consistent stream of new content. In 2022, Blizzard plans to release a slew of new material for the Warcraft property, including new World of Warcraft and Hearthstone experiences, as well as the first-ever mobile Warcraft content. Diablo II: ResurrectedTM sold more copies in the Diablo series from September through the end of the year than any other Activision Blizzard remaster during the same time period. Diablo Immortal’s public testing on mobile ended with great results. Blizzard is making significant progress on its pipeline, which includes new Warcraft experiences, continued Diablo and Overwatch development, and an intriguing new IP.”

Blizzard’s total revenue in Q4 2021 was $419 million, a reduction of $74 million from Q3 2021 and $160 million from Q4 2020. When compared to the whole year of 2020, Blizzard’s sales in 2021 are down $78 million.

Unfortunately, Blizzard lost another 2 million monthly active users (MAUs) during the quarter, bringing the total number of players lost to 14 million, or 36.8% of the total during the past four years. MAUs had kept stable at 26 million in the previous quarter, thanks to Diablo 2 Resurrected’s popularity in South Korea, but that doesn’t seem to have held true this quarter. MAUs for Activision and King also decreased at this time.

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As usual, we should point out that Blizzard reports MAUs in this manner on purpose to obscure which games are gaining and losing players. However, Blizzard is generally eager to announce it when a game’s MAUs grow, which it did not do in Q3 or Q4, leaving us to presume that some of those lost players are from WoW.

In the first quarter of 2018, 38 million dollars were spent. 37 million in the second quarter of 2018 In the third quarter of 2018, 37 million dollars were spent (BFA) In the fourth quarter of 2018, 35 million dollars were spent (mass layoffs) 32 million in the first quarter of 2019 32 million in the second quarter of 2019 33 million in the third quarter of 2019 (WoW Classic) 32 million in the fourth quarter of 2019 (Blitzchung) 32 million in the first quarter of 2020 (COVID-19) 32 million in the second quarter of 2020 (COVID-19) 30 million by the third quarter of 2020 (COVID-19) In the fourth quarter of 2020, there will be 29 million people (COVID-19, Shadowlands) 27 million in the first quarter of 2021 In the second quarter of 2021, there will be 26 million people (TBC Classic, WoW 9.1) In the third quarter of 2021, there will be 26 million people (D2R, lawsuits) In the fourth quarter of 2021, there will be a total of $24 million (Lawsuits, drought)

Activision-Blizzard previously said that company would “not be having a conference call, releasing an earnings presentation, or providing financial forecasts” awaiting the Microsoft acquisition. Here’s a rundown of everything that’s happened since 2015:

• Activision-Blizzard Q4 2021: Blizzard loses another 2 million monthly actives as ABK revenue holds steady • Activision-Blizzard Q3 2021: Blizzard MAUs hold steady at 26 million as Diablo II Resurrected drives revenues • Activision-Blizzard Q2 2021: Activision revenues are up, Blizzard MAUs are down amid sexism scandal • Activision-Bliz • Activision-Blizzard Q3 2020: Blizzard MAUs dropped to 30 million, but total ActiBlizz revenues remained stable. • Activision-Blizzard Q2 2020: Revenues increase for the first time in six quarters • Activision-Blizzard Q1 2020: Blizzard MAUs remain same at 32 million, but revenue surpasses Shadowlands • Activision-Blizzard Q4 2019: Revenues are down YoY for the fourth quarter in a row • Activision-Blizzard Q3 2019: Revenues are down for the third quarter in a row • Activision-Blizzard Q2 2019: Revenues dip again, WoW subs rise, expanded teams en route to Blizzard • Activision-Blizzard Q1 2019: Revenue has dropped by nearly a quarter since last quarter • Acti • Activision-Blizzard Q4 2017: ‘Record quarter, record year’ for Activision-Blizzard • Activision-Blizzard Q3 2017: Destiny 2 tops console charts, WoW monthly users remain’stable’ • Activision-Blizzard Q2 2017: Destiny 2 outperforms Destiny, WoW ‘time spent’ improves over 2016 • Activision-Blizzard Q1 2017: Blizzard

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