In an effort to streamline operations, Activision is now working more closely with Blizzard to leverage company-wide expertise – and impose a higher degree of financial discipline. Before the start of the year, King had seen its revenue over the last three years lag behind but has been making big strides recently with monthly active users totalling 272 million thanks to the segment’s highest revenue generating franchise: Candy Crush. While the firm has a strong track record for developing games that have continued to drive its revenue upwards, its Blizzard division had the lowest operating margin at 16% in Q1 2019 due to an in-game revenue decline.Īcross the three businesses, its Activision unit is by far the best performing in its annual results with revenue topping $2.45bn in 2018 as opposed to Blizzard’s $2.29bn.īlizzard division's operating margin, the lowest of the company's three unitsīut when it comes to quarterly performance, the company’s mobile segment King Digital Q1 2019 revenues outperformed its other segments at $529m. Given the size of the mobile videogame market, the upcoming release of the two games could be a massive growth driver for Activision Blizzard. Pachter notes that the firm is planning to release more mobile games from franchises across the three core businesses, including a Call of Duty mobile game that’s being developed in collaboration with Tencent and a sequel to first-person shooter game Diablo Immortal, which he thinks will be released sometime this year. ![]() ![]() Michael Pachter, analyst at Wedbush Securities, is one of the more bullish tracking the stock, with an outperform rating and a $56 price target.
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