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Financial Overview
Activision Blizzard’s total revenues were
$6.486 billion as of the end of calendar year
2019
Activision Blizzard’s total revenues were
$6.486 billion as of the end of calendar
year 2019, which is a 13.48% drop from its
previous year’s revenues of $7.500 billion.
FY 2018 saw record revenues for the
company, therefore 2019 revenues are
considered to be high overall (only a 1.8%
drop from FY 16, $6.608 billion).
Activision Blizzard reports its revenues
broken down by their main operating
regions, the Americas with a 51% share,
EMEA holding 35% and Asia Pacific with
14%.
The largest single revenue generating
country is the United States.
The company’s exploration of transitioning
to microtransactions and downloadable
expansion packs-based monetization
seem to have increased their operating
income in all regions in comparison with
FY 17 as the profit margin on these
products are significantly higher than on
standard videogame sales.
FY 18 was Activision Blizzard best
performing year ever due to the large
amount of franchise launches and in-game
content delivered. As their results are still
driven by new releases, the lower number
of releases show their financial impact in
the financial results of 2019.
Due regulatory and cost differences
between regions, such as China’s recent
licensing ban on newly developed
videogame titles and requirements to
completely rewrite segments of
videogames on certain occasions, below
we present a graph of operating income
by region.
Through observing the results of the net
operating income by region, it becomes
evident that despite lower net revenues for
Activision Blizzard in FY 19 the company
has become more profitable through its
cost-reduction efforts in terms of labour
cost cutting and reduction of sales and
marketing expenses.