When the UK's CMA announced their decision to block the Microsoft deal, Activision stock began to collapse. In response, Activision released their first 2023 earnings report ahead of schedule, and it shows fantastic (and surprising) growth.
Just recently we heard that the UK's CMA were planning to block Microsoft's acquisition of Activision. Obviously, this terrified Activision's investors, and as a result the company's stock price began to collapse.
Activision obviously wants to prevent this short-term crisis, and so they've chosen to release their impressive Q1 earnings report ahead of schedule. We can therefore share some key figures with you already. Generally speaking,Activision are thriving in 2023.
- If you're a Call of Duty fan, may we recommend the surprisingly good Vanguard graphic novel .
Activision Earn $740 Million In Q1, Compared To $395 Million Last Year
Activision have released their 2023 Q1 earnings report ahead of schedule, in the hope that impressive figures will stabilize their stock price. And, perhaps shockingly to Warzone players, the numbers are indeed very impressive. The company posted a net income of $740 million in Q1, which is almost twice as much as they earned in Q1 of 2022.
Their revenue actually far exceeded predictions made by analysts at FactSet, and much of this growth is attributed to Call of Duty and the success of MWII. Of course, there's almost no way they replicate that success with CoD 2023, but hopefully the stock will have fully recovered by then.
Besides the actual figures, there's also an interesting section within the report that directly addresses the CMA's decision to block the Microsoft deal. As they write,
Activision Blizzard considers that the CMA’s decision is disproportionate, irrational and inconsistent with the evidence. Microsoft has announced its decision to appeal the CMA’s ruling, and Activision Blizzard intends to fully support Microsoft’s efforts on this appeal.
The appeals process will take many months, but we shall keep you updated.
Are you glad to see Activision success? Or would you rather a game like XDefiant really does "kill CoD" soon?
Surely this game won't do as well as MWII: