Activision Blizzard, Inc. Reports a Record Breaking Quarter | Financial Buzz

 Activision Blizzard, Inc. Reports a Record Breaking Quarter

 Activision Blizzard, Inc. (NASDAQ: ATVI) announced Tuesday after markets closed record second-quarter 2020 results.

According to the popular video game developer, it has exceeded its second quarter outlook. Strong execution against our three strategic growth drivers of expanding audience reach, engagement and player investment enabled us to serve fantastic experiences to an enlarged gaming audience, against a backdrop of demand tailwinds from shelter-at-home. Each of our key franchises delivered better-than-expected results, with growth led by the Call of Duty® franchise following the launch of WarzoneTM. 

For the quarter ended June 30, 2020, Activision Blizzard’s net revenues presented in accordance with GAAP were $1.93 billion, as compared with $1.40 billion for the second quarter of 2019. GAAP net revenues from digital channels were $1.59 billion, as compared with $1.09 billion for the second quarter of 2019. GAAP operating margin was 39%. GAAP earnings per diluted share were $0.75, as compared with $0.43 for the second quarter of 2019.

“Our mission to connect and engage the world through epic entertainment has never been more meaningful,” said Bobby Kotick, Chief Executive Officer of Activision Blizzard. “Our 400 million players continue to experience fun, joy and accomplishment through our games. Our record engagement resulted in greater revenue and earnings per share than previously forecast. While economic uncertainty could have an impact on our near-term results, the initiatives that drove our growth for the first half of the year should also provide the foundation for long-term growth.”

As for outlook, Activision Blizzard claims that its business continues to experience strong. In the second half of the year, the Company expects to launch major new content into key franchises with meaningfully larger audiences than we have seen previously, creating the opportunity for strong financial performance. The full extent of the impact of the COVID-19 pandemic on  Activision Blizzard’s business, operations, and financial results will depend on numerous evolving factors that we are not able to fully predict at this time. The Company indicated awareness of risks and uncertainties related to global economic weakness, rising unemployment, pressures on the retail channel, pricing and other potential factors.