Stan

Activision Blizzard Q3 2018 Earnings Call

Sign in to follow this  

10 posts in this topic

32618-activision-blizzard-investor-call-

Quarterly results of the Activison Blizzard Investor Call are here and Blizzard has 37 million monthly active users across all games, same as in Q2 2018.

Major Releases

  • Activision launched Call of Duty: Black Ops 4
  • Blizzard released World of Warcraft: Battle of Azeroth
  • King launched Candy Crush Friends Saga

Franchise Expansion onto Mobile

  • Many top mobile games are based on IP originally created for console or PC
  • Hearthstone fanbase grew significantly upon its mobile launch
  • Investing in mobile releases for Activision and Blizzard franchises
  • Many more initiatives underway across the entire company

Audience Reach (345 MAUs -- Activision = 46M, Blizzard = 37M, King = 262M monthly active users)

  • Candy Crush Saga MAUs grew Y/Y
  • In October, King launched Candy Crush Friends Saga, building on five years of learing in Candy Crush
    • The game has reached the top of iPhone download charts in 93 countries
    • While still early, retention and monetization metrics are strong, and the game is on pace to drive meaningful growth for the franchise
  • World of Warcraft: Battle for Azeroth set a new day-one franchise record with more than 3.4 million units sold-through
  • World of Warcraft engagement grew strongly Q/Q, and the expansion saw strong participation in value-added services
  • Heartshtone continues to attract new players, surpassing 100 million life-to-date registered players
  • Destiny MAUs grew Q/Q and Y/Y, driven by the launch of Forsaken and reach initiatives for the base game
  • Activision MAUs increased significantly in October following the launch of Call of Duty: Black Ops 4
  • Black Ops 4 versus Black Ops III (the highest-grossing game in the franchise) in the first three weeks after launch:
    • Units sold-through were higher; PC units sold-through were over 3x higher
    • Total active users were 16% higher
    • Hours playerd were 20%+ higher

Deep Engagement & Player Investment

  • Continue to add new ways for fans to show their passion for or great franchises, including esport, linear content and social connections.
  • Continue to innovate in how additional content is offered, to drive strong engagement and commercial performance.

Activision Blizzard

  • Players spent a record 52 minutes per day in Activision, Blizzard, and King games in the quarter.
  • Viewership of our games was up significantly this quarter.

Call of Duty

  • In the month of October, Activision Blizzard had seven of the top 20 most viewed games on the industry's largest streaming platform, including Black Ops 4 where vierwership cotinues to break franchise records.

Overwatch League

  • The Overwatch League continues to build on the success of its inaugural season with the announcement of the sale of another six teams in September, again at substantioally higher valuations than team prices in the first sesason
  • The latest sales take the league to 20 total teams, with nine of these teams outside the U.S.

BlizzCon & World of Warcraft & Diablo

  • In November, BlizzCon drew over 40,000 fans in person with millions more livestreaming from around the world
  • Announcements included new content for every franchinse and Diablo Immortal for mobile

Q3 2018 Segment Results // Blizzard

  • Q3 Segment Net Revenues: $635M
  • Q3 Segment Operating Income: $189M (30% operating margin)

Key Highlights

  • Revenues grew 20% Y/Y, driven by World of Warcraft and the Battle for Azeroth expansion, which offset lower revenues for Overwatch & Hearthstone, with the latter facing a tough comp
  • Operative income grew 13% Y/Y as revenue growth offset investments in strategic initiatives, including the Overwatch League, other esports activities, Battle.net, and franchise incubation across multiple platforms

Check out the full presentation here.

Share this post


Link to post
Share on other sites
10 minutes ago, Maxkitty said:

Earnings are gonna drop hard in the next quarter. RIP Diablo 😞

How so?  Is there any current pay-to-play for Diablo?  Any new pay for content that they'll be missing out on?

Share this post


Link to post
Share on other sites
4 minutes ago, Gilby79 said:

How so?  Is there any current pay-to-play for Diablo?  Any new pay for content that they'll be missing out on?

The Activision Blizzard stocks are plummeting because of Diablo Immortal. The main problem I see is that Blizzard kind of lost their reputation among the community. It's really unfortunate, but I can't help but think that this is going to have a long term effect on Blizzard.

Share this post


Link to post
Share on other sites
5 hours ago, Kaelos said:

Candy Crush and Diablo mobile yess this is future of gaming

Would love to hear your version of gaming future, so the people who just dumped their ATVI stocks can find a better place for their money.
 

31 minutes ago, Maxkitty said:

The Activision Blizzard stocks are plummeting because of Diablo Immortal. The main problem I see is that Blizzard kind of lost their reputation among the community. It's really unfortunate, but I can't help but think that this is going to have a long term effect on Blizzard.

Major investors probably knew about the nature of the mobile title and the co-operation with NetEase well ahead of Blizzcon through shareholder calls, so it's probably the latter. Let's not forget, that the Acitivision part of the company isn't doing so well either, it would be an overreaction to blame it all on Diablo Immortal. Still I wouldn't be too worried - Mr. Kotick may be unpopular, but he has a few tricks up his sleeves.

  • Like 1

Share this post


Link to post
Share on other sites
1 hour ago, Maxkitty said:

The Activision Blizzard stocks are plummeting because of Diablo Immortal. The main problem I see is that Blizzard kind of lost their reputation among the community. It's really unfortunate, but I can't help but think that this is going to have a long term effect on Blizzard.

Please! In the report, Q3,  you can see that Blizzard-Activision will give the investor 52 cents per share and that the company generated $1.66B in revenue. For Q4 2018, the company is expecting earnings of 43 cents per share and $2.2B in revenu. Investors are being wary about the cautious expectation for Q4 2018. That alone explains the drop in share price.
 

Don't believe anyone on Wallstreet is playing Diablo 😉 I wish gamers could be the majority stock owner of gaming companies, then we can stop complain that too many boards of directors are thinking with their wallets.

  • Confused 1

Share this post


Link to post
Share on other sites
2 hours ago, Keller said:

Please! In the report, Q3,  you can see that Blizzard-Activision will give the investor 52 cents per share and that the company generated $1.66B in revenue. For Q4 2018, the company is expecting earnings of 43 cents per share and $2.2B in revenu. Investors are being wary about the cautious expectation for Q4 2018. That alone explains the drop in share price.
 

Don't believe anyone on Wallstreet is playing Diablo 😉 I wish gamers could be the majority stock owner of gaming companies, then we can stop complain that too many boards of directors are thinking with their wallets.

I don't play Diablo, I'm just saying I was kind of worried how it will affect Blizzard as a whole. I play WoW by far the most out of all of Blizzard's games and I still very much love Blizzard, even if they are a fraction of what they used to be to the community. That's why I'm worried, because expectations don't always reflect accurately to reality. I'm sure Blizzard is going to stay a strong company, but what about their reputation with the community after all the controversy? 

I'm not trying to be toxic/negative. I'm just trying to understand what's really going on, and how Blizzard's image of their future might impact them (whether it be positively or negatively). Especially regarding the transition to mobile that Blizzard wants to do. So many people are against it and Blizzard is all for it. It keeps me asking myself, what consequence will Blizzard face by taking this path? And most importantly, I'm beginning to question if they are really willing to let the hardcore fans down, in trade for money, and a broader, newer, and less passionate audience. It just seems like a reckless idea that will have a negative effect in the long run. 

Blizzard has one of the most passionate fanbases out there for a gaming company. I would die a little inside if that passion left Blizzard. And while some things I said may be debatable, I said them because I'm worried. I'm worried for the future of Blizzard.

  • Sad 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Similar Content

    • By Stan
      Blizzard today announced the release of four books, scheduled for Fall 2019: The Art of Hearthstone Vol. 2, The Art of Diablo, The Cinematic Art of WoW & The WoW Pop-Up Book. The books will be available for purchase on the Blizzard Gear Store or at your local bookstore.
      Blizzard (Source)
      We’re pleased to announce four new books coming to stores this fall. Whether you’re into Hearthstone, Diablo, or World of Warcraft (or all the above), there’s something special waiting for you within the pages of these collectible volumes.
       The Art of Hearthstone: Year of the Kraken Something stirs in the dark . . . 
      The second volume of The Art of Hearthstone dives deep into the Year of the Kraken, the first year of Hearthstone’s standard format. Enjoy 144 pages consisting of hundreds of illustrations from the corruptive cults of Whispers of the Old Gods, the glamourous disco of One Night in Karazhan, and the turf wars of Means Streets of Gadgetzan. Year of the Kraken goes into detail on the Hearthstone team’s artistic process for card art, game boards, and other visual designs, while also exploring the challenges and triumphs of creating a game enjoyed by millions of players around the globe.
      Purchase the first volume today on the Blizzard Gear Store or at your favorite local bookstore.
       The Art of Diablo For more than 20 years, the artists behind Diablo have conjured new visions of the High Heavens and the Burning Hells, built nightmarish corridors filled with monsters and demons, and unleashed swarms of malevolent creatures upon players worldwide. The Art of Diablo plunges into the concept, design, and environmental art that has defined the world of Sanctuary and the Eternal Conflict at the core of the Diablo series.
       The Cinematic Art of World of Warcraft The drums of war thunder once again . . .
      Over the course of World of Warcraft’s 15-year history, each new chapter in the game’s story has been bolstered through an array of epic cinematics; The Cinematic Art of World of Warcraft goes behind the scenes with the team who built these movies. With never-before-seen concept art and accounts of the creative and technical process, this is the definitive visual gallery of how countless artists helped bring the world of Azeroth to life in incredible detail and motion. 
       World of Warcraft Pop-Up Book Choose your faction, pick your weapon, and prepare for an astonishing vision of the world of Azeroth like you’ve never seen before!
      Built by best-selling paper engineer Matthew Reinhart, the World of Warcraft Pop-Up Book brings the beloved locations of Warcraft to life, from the classic faction hubs of Orgrimmar and Stormwind, to the battle-scarred lands of Lordaeron and Teldrassil, and even the new capital cities of Kul Tiras and Zandalar!
      Each page unfolds into an eye-popping treat, depicting iconic sites with brand-new art and interactive pieces.
      Keep an eye on your local booksellers or online shops for when pre-sales go live.
    • By Stan
      Bungie today announced on their website that they're regaining publishing rights for Destiny. They thanked Activision for their partnership on the game and said they're ready to publish on their own moving forward.
      Bungie (Source)
      When we first launched our partnership with Activision in 2010, the gaming industry was in a pretty different place. As an independent studio setting out to build a brand new experience, we wanted a partner willing to take a big leap of faith with us. We had a vision for Destiny that we believed in, but to launch a game of that magnitude, we needed the support of an established publishing partner.   With Activision, we created something special. To date, Destiny has delivered a combination of over 50 million games and expansions to players all around the world. More importantly, we’ve also witnessed a remarkable community – tens of millions of Guardians strong – rise up and embrace Destiny, to play together, to make and share memories, and even to do truly great things that reach far beyond the game we share, to deliver a positive impact on people’s everyday lives.   We have enjoyed a successful eight-year run and would like to thank Activision for their partnership on Destiny. Looking ahead, we’re excited to announce plans for Activision to transfer publishing rights for Destiny to Bungie. With our remarkable Destiny community, we are ready to publish on our own, while Activision will increase their focus on owned IP projects.   The planned transition process is already underway in its early stages, with Bungie and Activision both committed to making sure the handoff is as seamless as possible.   With Forsaken, we’ve learned, and listened, and leaned in to what we believe our players want from a great Destiny experience. Rest assured there is more of that on the way. We’ll continue to deliver on the existing Destiny roadmap, and we’re looking forward to releasing more seasonal experiences in the coming months, as well as surprising our community with some exciting announcements about what lies beyond.   Thank you so much for your continued support. Our success is owed in no small part to the incredible community of players who have graced our worlds with light and life. We know self-publishing won’t be easy; there’s still much for us to learn as we grow as an independent, global studio, but we see unbounded opportunities and potential in Destiny. We know that new adventures await us all on new worlds filled with mystery, adventure, and hope. We hope you’ll join us there.   See you starside.   BUNGiE
    • By Stan
      Activision Blizzard is down two senior executives so far in 2019. The game company has first put the Activision CFO Spencer Neumann on paid leave for cause unrelated to the company's financial performance, and he later joined Netflix. Today, we learned that Blizzard's CFO Amrita Ahuja left the company for Square.
      Placeholder for tweet 1080933799079247872 Activision Blizzard had a tough end of the year, caused by the announcement of Diablo: Immortal at BlizzCon. They are trying to cut costs in various ways, ranging from offering people money to leave the company to canceling Heroes Esports in 2019. Do you think both CFOs leaving the company will have positive effects on game development going forward? Share your thoughts in the comments!
    • By Stan
      If you're looking for the perfect last-minute presents for your friends, check out the latest holiday sale on Activison Blizzard titles that runs through January 7.
      World of Warcraft: Battle for Azeroth is $20 off and purchasing a second copy of the game for the same account is virtually cheaper than the level 110 in-game boost. Standard Edition: $29.99 (Reg. $49.99) Digital Deluxe Edition: $49.99 (Reg. $69.99) Complete Collection Standard Edition: $39.99 (Reg. $59.99) Complete Collection Digital Deluxe: $59.99 (Reg. $79.99) Select Pets (except Whomper) and mounts (excluding the latest Vulpine Familiar) are 50% off. Blizzard added a "See You Later Bundle" to the store and they plan to discontinue 9 digital goods when the sale ends on January 7. The bundle costs $49.95 and is dynamic, so the price will automatically adjust based on the amounts of goods you already own. It includes: 3 Helms: Crown of Eternal Winter, Jewel of the Firelord, Hood of Hungering Darkness 3 Mounts: Armored Bloodwing, Swift Windsteed, and Grinning Reaver 3 Pets: Lil' XT, Moonkin Hatchling (both versions), and Cenarion Hatchling. Overwatch The Legendary Edition (PS4) is on sale for $35.99 until January 1, 2019. The sale does not include any VAS or Heroes of the Storm goods. Blizzard (Source)
      Whether you’re eager to play something new, or you’re looking for those last-minute presents for your friends and family, now is the perfect time to give the gift of gaming on Blizzard Battle.net®.
      Today through January 7, 2019*, you can take advantage of these big discounts and bundle deals on Blizzard games and Activision PC titles on Battle.net.
       World of Warcraft® – Declare your allegiance to the Horde or the Alliance and join millions of players around the world as they fight to forge Azeroth’s future. All editions of Battle for Azeroth™ are now $20 off. See You Later bundle – Save up to 65% on collectibles that are going into the vault at the end of the Holiday 2018 sale, including three pets, three mounts, and three helms. Welcome new mounts and pets to your stable at a 50% discount (excluding the Whomper Charity Pet or Vulpine Familiar mount) and switch up your style with new helms for just $5 each.  Overwatch® – The world can always use more heroes, and they can save up to 50% on the Standard Edition, Legendary Edition, and Digital Upgrade (from Standard Edition).
       Call of Duty®: Black Ops 4 on PC
      Up to 25% off digital editions of the base game. $29.99 limited time introductory price for Black Ops 4 Battle Edition! Exclusive to Battle.net, this is the ultimate value for new players featuring Multiplayer and Blackout battle royale modes, with the option to upgrade to the base game.  Destiny® 2: Forsaken on PC
      Up to 25% off the expansion for players who own Destiny 2. Up to 40% off Destiny 2: Forsaken Legendary and Complete Collections—ideal for new players.  Diablo® III –‘Tis the season for demon-slaying action across the mortal realm of Sanctuary with savings of up to 50% on Diablo III and its expansions.
       StarCraft® – Deploying tactical discounts! Prepare for interstellar war, commander, and save up to 33% on the StarCraft II Campaign Collection and StarCraft Remastered.
       BlizzCon® 2018 Virtual Ticket – Get 20% off the Virtual Ticket, with access to replays from BlizzCon 2018, exclusive video programming, and bonus in-game items for all Blizzard franchises.
      In addition, the Winter Veil Wonder Bundle is available for Hearthstone® now through December 31: Add 30 card packs to your collection—six packs from five different expansion sets—for only $19.99.
      For details on these deals, make sure to check out the Battle.net Shop.
      Don’t forget that Battle.net now has enhanced gifting and Wish List features. Create your holiday Wish List with any item available on the Battle.net Shop, make them visible to your Battle.net friends, then use our newly enhanced gifting to bring joy to your gaming family. Check out our blog post about these features to see how they work.
      * Sale ends on January 7 at 9am PT for World of Warcraft, 10am PT for Overwatch, Destiny 2, Call of Duty and at 1pm PT for Diablo and StarCraft.
    • By Stan
      Christmas is around the corner and if you're looking for the perfect gift for your friends, the €20/£15 Blizzard Gift Card is now available at select retailers across Europe.
      The recipient can simply claim the code on the back of the card to top up their Blizzard Balance and purchase various goodies across all Blizzard games.
      Blizzard (Source)
      Have you ever wanted to give a friend a few Loot Boxes for Overwatch? Or gift that epic Luminous Starseeker mount to your World of Warcraft guildmate? Or a Hero from Heroes of the Storm, or some Card Packs in Hearthstone? Good news! We’ve got you covered with one simple solution — the Blizzard Gift Card.
      This €20/£15 gift card is now available at a wide range of retailers across Europe. Simply pick one up at any of the partner stores and give it to a friend. All they need to do is claim the code on the back of the card in order to charge up their Blizzard Balance, which can be used to purchase a variety of Blizzard digital items, games, and services. You can also use the gift card to charge up your own balance.
      You’ll find a list of retailers offering the Blizzard Gift Card at our giftcards page:
      FIND STORE
      For a full overview of what you can buy with Blizzard Balance, visit the Blizzard Shop. Here are just a few examples of the cool stuff you can give a friend via the Blizzard Gift Card:
      Overwatch Loot Boxes: with four items in each Loot Box, you're sure to be pleased with your assortment of Overwatch goodies!
        World of Warcraft pets and mounts: take to Azeroth's skies in style on an epic mount or adopt a cute pet.
        Hearthstone Card Packs: level up your collection and dominate your opponents in this insanely fun strategy card game!
        Heroes of the Storm Collection: pick up your favorite heroes, deck them out in the best-looking skins and mounts, then complete your collection with banners, sprays, voice lines and more!
        StarCraft II Expansions, Mission Packs, Commanders, Announcers, and more: enhance your gameplay experience and choose your own path to glory in the Koprulu sector!
        Diablo III: Rise of the Necromancer: Nephalem, discover the unique power of the Necromancer to defeat the evil forces of Sanctuary!
      Remember that you can also gift your friends specific digital items directly from the Blizzard Shop.