Description
Activision delivered a decent result but suffered on account of strong comps associated with the strong 2020 performance. The company benefitted from strong execution by their commercial and creative team in delivering high-quality experiences and in-game content to their deeply engaged community. The management aims to transform its franchisee portfolio through faster delivery of compelling premium content, robust in-game operations, expanding to mobile, and accelerating new engagement models, including free-to-play as well as advertising. Recently, they have created a new internal mobile studio and are aggressively increasing mobile resources across several teams, including Activision Shanghai and Beenox. Together these teams will lead the development of an unannounced latest mobile title within the Call of Duty space. The management expects that this will help take the franchise to new heights. It is worth highlighting that their Call of Duty mobile net bookings increased into double-digit year-over-year and was sequentially driven by strong executions. Overall, the company has a strong line-up planned for the second half of the year and bookings are expected to increase 2.7% for 2021. We are optimistic about Activision Blizzard and we maintain our ‘Outperform’ rating on the stock.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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