ACTIVISION BLIZZARD Reports Record Year-Over-Year Increase in Revenue and Net Income for FY2023 Q2

☀️Earnings Overview

On July 19 2023, ACTIVISION BLIZZARD ($NASDAQ:ATVI) announced its financial results for the second quarter of FY2023 ending June 30 2023, demonstrating a 34.2% year-over-year growth in total revenue of USD 2207.0 million and a 109.6% year-over-year increase in net income of USD 587.0 million.

Market Price

The company’s stock opened at $92.6 and closed at $92.2, down by 0.6% from the previous closing price of 92.7. The results exceeded the analyst expectations and indicated a strong financial performance from the company during this period. The increase in net income was driven by an increase in digital sales which accounted for the majority of the company’s revenue.

This growth was attributed to the company’s focus on developing new content for its popular franchises such as Call of Duty, World of Warcraft, and Overwatch. The company is well positioned to capitalize on the digital gaming market and continue its growth for the foreseeable future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Activision Blizzard. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Activision Blizzard. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Activision Blizzard. More…

Key Ratios Snapshot

Some of the financial key ratios for Activision Blizzard are shown below. More…

Analysis

Our analysis of ACTIVISION BLIZZARD‘s financials has classified them as an ‘elephant’, meaning that the company has a large number of assets after deducting off liabilities. This type of company may be interesting to investors looking for a solid investment with a low level of risk. Furthermore, ACTIVISION BLIZZARD’s health score is 10/10 due to their solid cashflows and debt, indicating that they are in a strong position to sustain future operations in times of difficulty. Additionally, ACTIVISION BLIZZARD is strong in terms of profitability and assets, while being medium in their dividend and growth rates. More…

Peers

The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.

– Take-Two Interactive Software Inc ($NASDAQ:TTWO)

Take-Two Interactive Software, Inc. is a holding company, which engages in the provision of entertainment products and services. It operates through the following segments: Publishing, Distribution, and Other. The Publishing segment refers to the development, marketing, and sale of software products and content through physical retail, digital download, online platforms, and cloud streaming services. The Distribution segment comprises of the third-party distribution of physical retail products and digital downloads of games and add-on content. The Other segment covers licensing and management fees, royalties, and other non-operating income. The company was founded by Ryan Brant and Jeffrey D. Lapin on September 24, 1993 and is headquartered in New York, NY.

– Electronic Arts Inc ($NASDAQ:EA)

Electronic Arts Inc is a leading global interactive entertainment software company. The Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.

As of 2022, Electronic Arts Inc has a market cap of 35.66B and a Return on Equity of 10.3%. The company is a leading global interactive entertainment software company and develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.

Summary

ACTIVISION BLIZZARD showed impressive performance in the second quarter of their fiscal year 2023, with total revenue growing 34.2% year-over-year and net income rising 109.6% over the same period. The company’s strong financials provide investors with confidence in the potential of the business model. Furthermore, as ACTIVISION BLIZZARD’s product portfolio is largely digital, it is well positioned to continue to benefit from increasing demand for digital content and services. Moving forward, investors will be watching to see if the company can continue its strong performance and capitalize on current growth trends.