Activision Blizzard Q1 2023 Financial Report: ABK Revenues Up While Blizzard MAUs Drop 40 Percent
Activision Blizzard released their financial disclosure for the first quarter of 2023, and they released it a day early for that matter. The results showed ABK revenues surpassing expectations, even if Blizzard's monthly active users dropped a whole 40% compared to last quarter.
For Activision Blizzard as a whole, revenues were up 25% compared to Q1 2022, with Q1 2023 seeing net revenues of $2.38 billion compared to the $1.77 billion in 2022.
«For the quarter ended March 31, 2023, Activision Blizzard’s net revenues presented in accordance with GAAP were $2.38 billion, as compared with $1.77 billion for the first quarter of 2022. GAAP net revenues from digital channels were $2.16 billion. GAAP operating margin was 34%. GAAP earnings per diluted share was $0.93, as compared with $0.50 for the first quarter of 2022. On a non-GAAP basis, Activision Blizzard’s operating margin was 40% and earnings per diluted share was $1.09, as compared with $0.64 for the first quarter of 2022.»
This news of ABK surpassing expectations was likely released early to combat the negative effect the UK blocking the Microsoft acquisition this morning would have on the stock price. Activision Blizzard addresses this update to the acquisition in the Financial Disclosure report, calling the findings from the UK's Competition and Markets Authority, or CMA, «disproportionate, irrational and inconsistent with evidence.»
«On April 26, 2023, the United Kingdom Competition and Markets Authority (»CMA") announced a decision to block the merger, stating that competition concerns arose in relation to cloud gaming and that Microsoft’s remedies addressing any concerns in cloud gaming were not sufficient. Activision Blizzard considers that the CMA’s decision is
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