Activision realized higher-than-expected net bookings of $3.57 billion for Q4 2022 as it hopes to conclude its Microsoft deal in June.
Activision Blizzard (NASDAQ: ATVI) has posted its Q4 2022 earnings report, which topped consensus estimates despite a broader quarterly drag for game makers. On Monday, February 6th, the prominent video game publisher reported a commendable performance for the last three months of 2022.
For Q4 2022, Activision saw net bookings of $3.57 billion, compared to the $3.08 billion analysts expected for the quarter. In addition, the Santa Monica-based company realized adjusted earnings per share (EPS) of $1.87 for the quarter versus the $1.52 expected. Activision also reported its Q4 2022 monthly active users (MAUs) as 389 million. Analysts were expecting a slightly smaller MAU user base of 388.4 million for the same period.
Furthermore, Activision generated $1.12 billion in operating cash flow for the fourth quarter compared with the $661 million it made a year ago. Expectations were exceptionally high for the American video game developer coming into this earnings cycle because Activision recently went through a series of high-profile gaming releases that saw tentpole titles hit stores. These releases included Call of Duty: Modern Warfare II, World of Warcraft: Dragonflight, and Overwatch 2.
“Modern Warfare,” arguably Activision’s most famous gaming title, sent the company’s figures soaring ten days after its 2022 release. Released in late October last year, the first-person shooter game generated $1 billion in sales for Activision despite a downturn in consumer spending.
Activision CEO Weighs in On Q4 2022 Performance
Commenting on Activision’s recent quarterly performance, company CEO Bobby Kotick said:
“We ended 2022 with record quarterly net bookings as we delivered on our mission to bring epic joy to players. I’m grateful to our talented and hardworking teams for their many successes entertaining our hundreds of millions of players around the world.”
Kotick also touched on the company’s looming controversial deal with Microsoft (NASDAQ: MSFT), touting expected breakthroughs. According to the Activision chief executive:
“We look forward to a historic year as we work toward merging with Microsoft. This merger will enable us to better serve our players, create greater opportunities for our employees, and allow us to succeed in an increasingly competitive global gaming industry.”
Following the reported fourth-quarter performance, Activision shares increased by approximately 1% in after-hours trade.
The Microsoft-Activision acquisition deal is scheduled to conclude by the end of June 30th this year, pending regulatory approval. Although both parties continue to engage presiding regulators, the deal is yet to receive a green light. In fact, the Federal Trade Commission (FTC) is against Microsoft’s acquisition of the video game publishing giant. According to the FTC, such a purchase would give Microsoft an absolute advantage and an insurmountable edge over competitors.
The FTC argues that by owning Activision, Microsoft could have exclusive rights to vaunted games like “Call of Duty” and “Candy Crush.”
The Microsoft-Activision deal is valued at approximately $69 billion.
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