Activision Blizzard Q2 2022 Financial Results

Activision Blizzard’s financial results for the second quarter of 2022 reveal a significant downturn in performance, primarily driven by decreased engagement within the Call of Duty franchise. The company reported net revenues of $1.64 billion, representing a 28.3% decline from the $2.29 billion recorded during the same period in 2021. This contraction extended to profitability, with operating profit falling 64.7% to $338 million and net income dropping 68% to $280 million. Additionally, the company’s total monthly active users (MAU) decreased from 408 million in Q2 2021 to 361 million by the end of June 2022.

The revenue decline was broad-based, affecting both product sales, which fell 46.4%, and in-game purchases and subscriptions, which dropped 22.4%. While the Activision division struggled with lower engagement, it noted that net bookings for the Call of Duty franchise on PC and console grew sequentially, and mobile bookings remained stable. The company anticipates a recovery in the fourth quarter, anchored by the launch of new titles in the Call of Duty ecosystem.

Performance across other divisions was mixed. The Blizzard segment experienced year-over-year declines in revenue and operating income, though it showed improvement over the first quarter of 2022. The studio is focusing on future growth through the upcoming release of the Overwatch 2 beta and the development of Diablo IV. Conversely, the King division demonstrated resilience, reporting year-over-year growth in both in-game net bookings and advertising revenue. These findings reflect a challenging period for the publisher as it navigates shifting player engagement levels while preparing for a slate of upcoming product releases.