Activision Blizzard’s fourth-quarter net profit rose 11% from a year earlier on revenue of $2.163 billion

2022-05-05 0 By

Activision Blizzard inc. today announced its fourth-quarter and full-year financial results for fiscal 2021.Activision Blizzard reported fourth-quarter net revenue of $2.163 billion, above the $2.02 billion the company had expected but down from $2.413 billion a year earlier.Net scheduled revenue was $2.49 billion, compared to $3.05 billion in the prior year;Net income was $564 million, up 11 percent from $508 million a year earlier.Activision Blizzard’s fourth-quarter net revenue and adjusted earnings per share missed Wall Street analysts’ expectations, sending its shares down slightly after hours.Fourth-quarter results: Activision Blizzard reported net income of $564 million, or 72 cents per diluted share, for the quarter ended Dec. 31, down from a year earlier.For the fourth quarter of fiscal 2020, Activision Blizzard reported net income of $508 million, or $0.65 per diluted share.Activision blizzard had forecast fourth-quarter earnings of 54 cents a share.Excluding certain one-time items, which are not based on U.S. GAAP, Activision Blizzard earned $1.01 a share in adjusted earnings, beating the 62 cents the company had expected and 76 cents a year earlier, but missing analysts’ expectations.On average, 25 analysts had expected Activision blizzard to earn $1.31 a share, according to Yahoo Finance.Activision Blizzard’s fourth-quarter net revenue was $2.163 billion, above the $2.02 billion the company had expected but down from $2.413 billion a year earlier.By business segment, Activision Blizzard reported net revenue from product sales of $645 million in the fourth quarter, compared with $866 million a year earlier.Revenue from subscriptions, licensing and other businesses was $1.518 billion, compared with $1.547 billion a year earlier.In the quarter, Activision Blizzard generated $1.78 billion in net revenue from digital channels.Activision Blizzard reported $2.49 billion in Net Bookings for the fourth quarter, compared with $3.05 billion a year earlier. That missed analysts’ expectations.On average, 23 analysts had expected Activision blizzard to post $2.82 billion in net booked revenue, according to Yahoo Finance.During the quarter, Activision Blizzard generated $1.24 billion in net scheduled revenue from in-game channels, compared with $1.32 billion a year earlier.Activision Blizzard’s fourth-quarter operating profit was $682 million, compared with $594 million a year earlier.Activision Blizzard reported operating cash flow of $661 million in the fourth quarter, down 42% from $1.14 billion a year earlier.Activision blizzard’s total costs and expenses were $148.1 billion in the fourth quarter, compared with $1.819 billion a year earlier.Of this amount, in terms of product sales revenue, product cost was $274 million, compared to $349 million in the year-ago period;Software royalty, amortization and intellectual property licensing costs were $73 million, compared to $117 million in the year-ago period.In terms of in-game, subscription and other revenue costs, operating and distribution costs were $290 million, compared to $313 million in the year-ago quarter;Software royalty, amortization and intellectual property licensing costs were $20 million, compared to $39 million in the prior year.In terms of expenses, Activision Blizzard spent $321 million on product development in the fourth quarter, compared with $350 million a year earlier.Sales and marketing expenses were $299 million, compared to $341 million a year ago;General and administrative expenses were $174 billion, compared with $255 million a year ago;Restructuring and related charges were $30 million, compared with $55 million a year ago.Activision blizzard had 371 million overall monthly active users in the fourth quarter.Key FISCAL 2021 results: For the full fiscal year 2021, Activision Blizzard reported net revenue of $8.803 billion, compared to $8.086 billion in fiscal year 2020.Activision blizzard reported net scheduled revenue of $8.35 billion in fiscal 2021, compared with $8.42 billion in fiscal 2020, which fell short of analyst expectations.On average, 30 analysts had expected Activision blizzard to post $8.7 billion in net revenue in fiscal 2021, according to Data provided by Yahoo Finance.Activision Blizzard reported net income of $2.699 billion in fiscal 2021, compared to $2.197 billion in fiscal 2020.Diluted earnings per share of $3.44, compared to $2.82 in fiscal 2020;Excluding certain one-time items (not under U.S. GAAP), Activision Blizzard reported adjusted earnings per share of $4.08 in fiscal 2021, up from $3.21 in fiscal 2020 and beating analysts’ expectations.On average, 28 analysts had expected Activision Blizzard to post adjusted earnings per share of $3.78 in fiscal 2021, according to data provided by Yahoo Finance.Activision Blizzard reported operating cash flow of $2.41 billion in fiscal 2021, compared to $2.25 billion in fiscal 2020.Microsoft Acquisition: Microsoft announced on January 18, 2022 that it plans to acquire Activision Blizzard for an all-cash price of $95.00 per share, valued at $68.7 billion, including Activision Blizzard’s net cash.The transaction is subject to customary closing conditions, as well as regulatory review and approval by Activision Blizzard’s shareholders.The deal, which has been approved by activision Blizzard and Microsoft’s boards, is expected to close in Microsoft’s fiscal year ending June 30, 2023.Stock movers: Activision Blizzard shares fell 30 cents, or 0.38%, to close at $78.95 in regular nasdaq trading.Activision Blizzard shares fell another $0.20, or 0.25%, to $78.75 in after-hours trading at 6:41 p.m. Est Thursday (6:41 a.m. Friday).Over the past 52 weeks, Activision Blizzard has traded as high as $104.53 and as low as $56.40.(tang)