Activision Blizzard Reports Strong Quarter Amid Microsoft Fallout

With its future sale to Microsoft up in the air, Activision Blizzard reported strong first quarter 2023 financial results.

The “Call of Duty” game publisher reported that net income for the three months ending March 31 rose 87% to $740 million, while revenue rose 36% to $2.38 billion.

The positive results were driven by growth across three of its segments, according to Video Game News.

“Every one of our key intellectual properties continues to grow year-over-year, with ‘Call of Duty’ once again a key driver of growth,” said Bobby Kotick, chief executive officer of Activision Blizzard

Based on strong pre-sales for “Diablo IV,” Activision Blizzard also projected positive results for the second quarter ending June 30.

“We expect Activision Blizzard second quarter GAAP revenue to grow at least 10%, net bookings to grow at least 30%, and total segment operating income to grow at least 40%, in each case on a year-over-year basis,” read a statement from the company.

$69B Deal Blocked in U.K.

On Wednesday, Britain’s top competition regulator stepped in to block Microsoft’s proposed $69 billion acquisition of Activision Blizzard. The Xbox maker will appeal the decision. 

“The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom,” said Microsoft president Brad Smith. 

“We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies”