Q4 2021 financial results: How is Blizzard doing?

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Activision Blizzard has just shared its financial results for the fourth quarter of 2021. The turnover amounts to 2.16 billion dollars, for 2.41 billion a year earlier. If this is better than the firm’s estimates, it is nevertheless lower than expected by analysts. Earnings amounted to $0.72 per share, compared to $0.65 a year earlier. For the full year, revenue was $8.35 billion, down slightly from 2020.

Activision is pleased with its strategy of growing the ranks of developers, with several hundred employees evidently joining the company’s ranks over the past year.

As you will see, World of Warcraft, Hearthstone and Diablo II : Resurrected are doing particularly well. A new mobile title side Warcraft should also be offered later in the year. Find the details below.

Number of players and turnovers

  • Activision recorded 107 million monthly players in the 4th quarter, a decrease of 8 million compared to Q3 2021, but above all a decrease of 21 million compared to the previous year.
  • Blizzard saw 24 million monthly users, down from 2 million. This is Blizzard’s worst number in a long time.
  • King is doing slightly worse than in Q3 with 240 million players, but it’s the same number as the previous year.
  • Revenue
    • Activision announces a turnover of 1.157 billion US dollars, with 618 million profits.
    • Blizzard announces a turnover of 419 million US dollars, with 161 million in profit. If the profit is stable, the operating result falls heavily compared to 2020, when it was 579 million.
    • King announces a turnover of 684 million US dollars, with 385 million profit.

It should be noted that digital revenues now represent 82% of the total, compared to only 6% for retail. Other revenue, which notably includes the Overwatch League and the Call of Duty League, accounted for 12% of total revenue for the quarter.

If we compare the same data between 2020 and 2021, digital gains 5% to represent 87% of total sales, for only 5% for retail and 8% for the rest.

On the platform side, consoles weigh 30% of revenues, down from 2020 (34%). On the other hand, the CP progresses a little and goes to 26% instead of 25%. Mobile is advancing faster and now exceeds revenues generated on consoles, with 36% of sales (compared to 32% a year earlier).

Geographically, the Americas take the lion’s share and generate 56% of revenues, compared to 32% for Europe, the Middle East and Africa. Asia accounts for 12% of turnover.

Blizzard

  • In the fourth quarter, Blizzard had 24 millions monthly active players, compared to 26 million in the previous quarter.
  • On the Warcraft side, the fourth quarter engagement for World of Warcraft continues to benefit from the combination of modern and Classic gaming under a single subscription. In 2021, World of Warcraft experienced his highest engagement rate and his highest income apart from a one-year extension for 10 years.
  • Hearthstone’s fourth quarter revenue progressed compared to last year thanks to the regular arrival of new content.
  • Blizzard is planning lots of new stuff for Warcraft in 2022, including new experiences for World of Warcraft and Hearthstone, and adding new Mobile Warcraft content in the hands of gamers for the first time.
  • On the Diablo side, Diablo II: Resurrected has no longer sold between its September release and the end of the year than any other Activision Blizzard remaster over the same period.
  • On mobile, Diablo Immortal has completed its testing phase with positive feedback.
  • Blizzard progress about his plans, including new experiences for Warcraft, development of Diablo and Overwatch, and a new IP.

Activision

  • Call of Duty sales are down, both on PC and consoles. Call of Duty: Vanguard does significantly worse than Warrzone, but also has a harder time retaining its players. So he loses on both counts.
  • Luckily, Activision is planning new Warzone and “premium” experiences in 2022. With Invinity Ward at the helm, ambitions are high and the franchise isn’t going anywhere anytime soon.
  • On the Call of Duty Mobile side, things are going well, with sales up compared to the 4th quarter of 2020. Thanks to China, where CoD is a real hit. Over the past year, CoD Mobile has generated over $1 billion in revenue.

King

  • Candy Crush is still going strong, with revenue up and a new record for the 4th quarter. It’s been going on for years and it’s clearly not ready to stop.
  • King is focused on producing more content and it shows in the average hours played by users. The number of gamers whipping out their credit card for in-app purchases is on the rise.
  • King’s ad business soared 60% in 2021.

Activision Blizzard has just shared its financial results for the fourth quarter of 2021. The turnover amounts to 2.16 billion dollars, for 2.41 billion a year earlier. If this is better than the firm’s estimates, it is nevertheless lower than expected by analysts. Earnings amounted to $0.72 per share, compared to $0.65 a year earlier.…

Activision Blizzard has just shared its financial results for the fourth quarter of 2021. The turnover amounts to 2.16 billion dollars, for 2.41 billion a year earlier. If this is better than the firm’s estimates, it is nevertheless lower than expected by analysts. Earnings amounted to $0.72 per share, compared to $0.65 a year earlier.…

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