ATVI announced its first quarter 2018 earnings, declaring record results.
GAAP revenue for the quarter was $1.97B, up from $1.73B in Q1 2017.
Blizzard Entertainment CEO Mike Morhaime confirmed the Overwatch League will add expansion teams by the end of the year.
(NASDAQ: ATVI) released its Q1 2018 earnings report. The company followed up its record year in 2017 with another record quarter, posting the highest Q1 revenues, net bookings, and operating cash flow.
Net bookings increased from $1.20B in Q1 2017 to $1.38B.
Operating cash flow this quarter was $529M, up 29% year-over-year.
The hours leading up to ATVI’s official announcement were chaotic for stockholders and investors, due to false information that had been shared early.
The hours leading up to ATVI’s announcement were chaotic, due to false information that had been shared early.
However, the company still projects 2018’s total revenue to increase over last year. ATVI reported $7.02B in revenue in 2017, and expects to finish 2018 at $7.48B.
Activision Blizzard launched an experimental esports initiative this year in the Overwatch League, a franchised competitive league with 12 teams representing cities around the world. While viewership for the league has been up and down, ATVI praised the league’s impact on Overwatch engagement.
The company reported that combined hours playing and watching Overwatch has increased quarter-over-quarter. Blizzard Entertainment CEO Mike Morhaime confirmed that the OWL has begun selling expansion spots, and intends to add its first round of new teams by the end of the year.
Overall, Activision Blizzard continues to thrive, with growth and stability that allows for long term experimentation like the Overwatch League. That said, the company seems to have put all of its esports eggs into the Overwatch basket for now, which still needs to demonstrate its worth as a model, before it can be ported to other esports titles.