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Post Earnings Coverage as Activision Blizzard's Quarterly Revenue Jumped 19%; EPS Gained 17%

Upcoming AWS Coverage on RealNetworks Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 18, 2017 / Active Wall St. announces its post-earnings coverage on Activision Blizzard, Inc. (NASDAQ: ATVI). The Company released its first quarter fiscal 2017 financial results on May 03, 2017. The video game maker posted record revenue and surpassed top- and bottom-line expectations. Register with us now for your free membership at:


One of Activision Blizzard's competitors within the Multimedia & Graphics Software space, RealNetworks, Inc. (NASDAQ: RNWK), reported on May 03, 2017, results for its Q1 ended March 31, 2017. AWS will be initiating a research report on RealNetworks in the coming days.

Today, AWS is promoting its earnings coverage on ATVI; touching on RNWK. Get our free coverage by signing up to:


Earnings Reviewed

For the quarter ended March 31, 2017, Activision Blizzard posted a first quarter revenue record of $1.73 billion, up 19% compared with revenue of $1.46 billion for Q1 2016. The Company's revenue numbers easily surpassed analysts' consensus of $1.09 billion. Activision Blizzard's net revenues from digital channels were a Q1 record of $1.39 billion, growing 50% on a y-o-y basis.

Activision Blizzard reported earnings of $426 million, or $0.56 per share, in Q1 2017 compared with earnings of $363 million, or $0.48 per share, in Q1 2016. The Company reported adjusted earnings of $0.31 per share, ahead of Wall Street's estimates of $0.21 per share.

Business Details

Audience Reach

In Q1 2017, Activision Blizzard had 431 million Monthly Active Users (MAUs). Blizzard reported its biggest Q1 online player community in its history with MAUs accounts (MAUsA) of 41 million, up 58% on a y-o-y basis. Overwatch continues to be Blizzard's fastest growing new franchise, reaching over 30 million players globally in less than a year after launch. Overwatch is now the 8th billion-dollar franchise in Activision Blizzard's portfolio.

Activision had 48 million MAUsA in Q1 2017, down year-over-year primarily due to expected softness from last year's Infinite Warfare™ release. Activision expects to release Call of Duty: WWII on November 03, 2017.

The Company's King had 342 million MAUsA for Q1 2017, down compared to the year ago period, but better per user engagement and investment. King had two of the top 10 highest-grossing titles in the US mobile app stores for the fourteenth quarter in a row.

Player Investment

During Q1 2017, Blizzard's revenues from in-game content grew more than 25% on a y-o-y basis, driven by revenues from World of Warcraft in-game content and continued strength of Overwatch customization items. Activision expects to release a new content offering for Call of Duty: Black Ops 3 fans, Zombies Chronicles, on May 16, 2017.

King's Q1 2017 gross bookings per paying user grew for the 7th quarter in a row to a new record. The Candy Crush™ franchise showed continued stability with mobile bookings up on a q-o-q basis.

Cash Matters

For the reported quarter, Activision Blizzard's operating cash flows were a Q1 record of $411 million, up 22% on a y-o-y basis. During Q1 2017, the Company prepaid $500 million of its term loan.


Activision Blizzard raised its full-year 2017 adjusted earnings forecast to $1.88 per share from the previous guidance of $1.85 and its adjusted revenue projection to $6.33 billion compared to $6.30 billion announced earlier.

Stock Performance

On Wednesday, May 17, 2017, the stock closed the trading session at $54.23, falling 4.49% from its previous closing price of $56.78. A total volume of 10.30 million shares have exchanged hands, which was higher than the 3-month average volume of 5.99 million shares. Activision Blizzard's stock price soared 19.97% in the last three months, 44.46% in the past six months, and 43.13% in the previous twelve months. Moreover, the stock skyrocketed 51.10% since the start of the year. The stock is trading at a PE ratio of 40.08 and has a dividend yield of 0.55%.

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SOURCE: Active Wall Street