Description
Gaming giant, Activision Blizzard’s third-quarter results were above the management’s guidance. The company had a decent performance which demonstrates the structural expansion of its largest franchises as the management implements its strategy of delivering gaming experiences across new platforms with more regular content and leveraging multiple commercialization models, including free-to-play. Moreover, they increased their developer headcount by hundreds of talented professionals in the third quarter and have increased their development organization by hundreds of talented professionals’ year to date, including the announcement of new studios and expansions in multiple new cities globally. It is worth highlighting that Activision’s in-game net bookings increased in the mid-teens year over year in the third quarter, while advertising increased by approximately 60%. In summary, the business grew solidly year over year in the third quarter, and the management expects significant growth in their portfolio of internally owned IP in the coming quarters. We give Activision Blizzard a ‘Hold’ rating with a revised target price.
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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