Activision Blizzard has released a financial report that details their first quarter earnings. Among the sea of information is the revelation that Overwatch has earned over $1 billion worldwide for Blizzard Entertainment.
Net revenues for Activision Blizzard have set records for Q1: $1.73 billion total, as compared to $1.46 billion in Q1 2016 – an increase of 19%. (Net revenue is the amount of money a company has brought in after the costs associated with the sale of goods.) The Operating Cash Flow for the company (that is, revenue minus operating expenses such as salaries, building maintenance, etc.) also broke Q1 records at $411 million, a 22% increase year-over-year.
Aside from the numbers in their bank account, player numbers have been going up for the company as well – especially at Blizzard Entertainment. The company has 41 million monthly active users, up 58% year-over-year. The increase is partially attributed to Overwatch, a game that is Blizzard Entertainment’s fastest growing franchise so far. The game has reached over 30 million players total before its first anniversary. Another contributing factor to the recent success of Blizzard is the growth in Hearthstone (which recently passed a milestone of its own upon reaching 70 million players). The financial report states that the game has continued to grow in terms of playerbase despite the lack of any content releases in the first quarter.
As for Overwatch, the report states that the game has crossed the $1 billion earnings mark. This makes it the eighth franchise within the Activision Blizzard portfolio to have earned over a billion dollars, placing it among other blockbuster franchises such as Skylanders and Call of Duty.
What do you think are the biggest reasons that Activision Blizzard has had a record-breaking first quarter for net revnues? What do you think some of the core reasons are for Overwatch having earned a billion dollars before the game is even a year old? Do you think it would be a sensible financial decision to invest in the company or are there better performers out there? Let us know in the comments below!More About This Game