Activision Blizzard revenue up despite console sales decline

Katharine  Byrne
Activision Blizzard revenue up despite console sales decline

Activision Blizzard has posted "better than expected" financial results for Q2 2017. Net revenue hit $1.63bn for the quarter ending June 30th, rising 4 per cent year-on-year. Digital channels, meanwhile, grew 15 per cent year-on-year to reach $1.31bn. 

That said, console sales for Q2 were actually down 13 per cent year-on-year for Activision Blizzard, making up $568m of its total net revenue. This will no doubt improve next quarter, however, once the huge success of Crash Bandicoot N.Sane Trilogy has been factored in, which only released on June 30th. 

PC sales, on the other hand, rose by 24 per cent year-on-year, generating $508m revenue. That's 31 per cent of the publisher's total net revenue. The mobile and ancillary division, meanwhile, rose 9 per cent year-on-year to $403m. 

Activision Blizzard also reported 407m monthly active users in the quarter, with Blizzard having the highest quarterly online player community in its history with a record 46m MAUs. That's an increase of 38 per cent year-on-year. This growth was largely driven by Overwatch, which set another all-time MAU record with the release of its two seasonal events. Hearthstone MAUs also grew year-on-year and quarter-on-quarter to an all-time record thanks to its Journey to Un'Goro expansion, but Activision Blizzard didn't mention any specific figures. 

MAUs on Activision's side, meanwhile, dropped slightly to 47m last quarter, but this should pick up again once the publisher launches Destiny 2 in September. Pre-orders for the title are now above the first Destiny, Activision noted, and the closed beta had more total players than the 2014 Destiny beta.

Pre-orders and hands-on feedback for Call of Duty: WWII has also been "strong", said Activision.

Bobby Kotick, CEO of Activision Blizzard, said: "This was another strong quarter for Activision Blizzard. We exceeded our outlook and delivered record revenues for the first half of 2017.

"Celebrating players and audiences is the foundation for our success. This quarter we announced the first team owners in the Overwatch League™, the first major global, city-based professional esports league. With hundreds of hours of broadcast content ahead of us, as well as significant sponsorship and media opportunities, the Overwatch League will provide new ways for us to highlight and support the passion of esports fans and the skill of some of the world's top Overwatch players."

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Tags: Activision , fiscal results , q2 , financial results , blizzard entertainment , activision blizzard , Overwatch , financial reports

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