Here Are Activision Blizzard’s Key Sources of Revenue

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Activision Blizzard
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Activision Blizzard (NASDAQ:ATVI) generates its revenues primarily from its Activision, Blizzard, and King segments, along with its distribution business. Below we share more information on these segments. We have created an interactive dashboard ~ What Are Activision Blizzard’s Key Sources of Revenue.  Also, here is more Information Technology data.

Activision Revenues

Activision segment includes console games from Activision such as Call of Duty, Destiny, and Skylanders.

  • Revenues of $2.7 billion, representing 37% of the company’s total revenues in 2018.
  • Added $277 million from 2015 to 2018 at a CAGR of a little under 4%.
  • Revenue growth in the recent past was primarily led by the Call of Duty franchise.
  • Call of Duty: Black Ops 4 units sold so far ~ 9.3 million.
  • Next release for Call of Duty franchise is scheduled for Q4 2019.
  • Expect revenue growth of $41 million or 1.5% in 2019 led by modest growth in Monthly active users (MAUs) and ARPU.
  • MAUs ~ 49 million, and ARPU of $56 in 2018 grew at a CAGR (2015-2018) of 5%, and -1% respectively.

Blizzard Revenues

Blizzard’s portfolio of console games include franchises such as Overwatch, Diablo, World of Warcraft, and Hearthstone.

  • The Blizzard segment revenues of $2.3 billion accounted for roughly 30% of the company’s total revenues in 2018.
  • Added $687 million from 2015 to 2018 at a CAGR of 12%.
  • The revenue growth in 2018 was led by World of Warcraft franchise.
  • However, revenues will likely see a sharp decline in 2019, given that there is no release planned for World of Warcraft franchise.
  • MAUs ~ 37 million, and ARPU of $62 in 2018 grew at a CAGR (2015-2018) of 20% and -4% respectively.

King Revenues

King’s casual mobile gaming portfolio includes games, such as Candy Crush, Farm Heroes, Pet Rescue, and Bubble Witch.

  • King revenues of $2.1 billion accounted for a little under 30% of the company’s total revenues in 2018.
  • Of late, it is benefiting from its new game ~ Candy Crush Friends.
  • We expect the active user base to see growth in the coming quarters, led by the new launches in the Candy Crush franchise, and an uptick in advertising revenues.
  • Monthly active users (MAUs) ~ 271 million, and ARPU of $8 in 2018 grew at a CAGR (2015-2018) of -14% and 29% respectively.

 

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