Activision Blizzard Reports $604M Profits for Q3 Driven by a Strong Call of Duty Brand

Video game holding company Activision Blizzard published its financial earnings for the third quarter of 2020. The company generated net revenues of $1.95B USD, up 52% compared to $1.28B during the same period of 2019.

In total, the company recorded a net income of $604M or $0.78 earnings per share (EPS), up 196% compared to $204M in Q3 2019. Activision Publishing’s Call of Duty brand once again was the biggest driver of engagement and financial performance during this period. Activision Blizzard expects its Call of Duty, World of Warcraft, and Candy Crush franchises to generate over $1B in net bookings each this year.

The video game holding company reported key performance indicators for its three business segments, Activision Publishing (console games), Blizzard Entertainment (PC games), and King (mobile games). Spread over all its assets, the company reported a player base of over 390M players, up 23% year-over-year.

Activision had 111M monthly active users (MAUs) in the third quarter, mostly driven by its Call of Duty series player base. The business generated roughly 40% of Activision Blizzard’s total revenues at $773M, up 270% year-over-year, and an operating profit of $345M at a 45% operating margin, both marking Q3 records. The revenue growth was primarily driven by Call of Duty Modern Warfare and Call of Duty Warzone in-game purchases, Call of Duty Modern Warfare premium sales, and strong performances of Call of Duty Mobile and Tony Hawk. In September, the franchised Call of Duty League’s inaugural season concluded, breaking all prior viewership records for a Call of Duty esports event.

Blizzard had MAUs of 30M for the period and generated revenues of $411M, increasing 4% year-over-year, primarily driven by another strong quarter for World of Warcraft. The segment’s operating income for Q3 was $133M at an operating margin of 32%, which increased by 80% year-over-year.

King reported 249M MAUs and generated revenues of $536M for Activision Blizzard during the quarter. The segment’s revenues increased by 7% year-over-year. King’s operating profit was $248M, with an operating margin of 46%.

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