Income Statement
Quarterly Data
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Activision Blizzard Inc., consolidated income statement (quarterly data)
US$ in millions
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
Net revenues exhibit a consistent pattern of seasonality, typically peaking in the fourth quarter of each fiscal year. A structural transition in the revenue mix is evident, as in-game, subscription, and other revenues have grown to become the dominant and most stable component of total income, while traditional product sales show higher volatility and a general decline in relative contribution over the analyzed period.
- Revenue Composition and Trends
- In-game, subscription, and other revenues have demonstrated steady growth, rising from approximately 1.2 billion US$ per quarter in 2018 to consistently exceeding 1.6 billion US$ by 2023. Conversely, product sales are subject to significant quarterly swings, often spiking in December and hitting lows in September, indicating a heavy reliance on seasonal release cycles for physical or initial software sales.
- Gross Profitability
- Gross profit margins remain robust, although they fluctuate in alignment with the seasonal nature of product sales. The cost of revenues typically increases in the fourth quarter, mirroring the surge in product sales, but the overall gross profit has trended upward from 2018 levels, reaching peaks of over 1.7 billion US$ in early 2023.
Operating expenses show a gradual increase, particularly within product development and general administrative costs, suggesting higher investment in content creation and corporate overhead over time.
- Operating Expenditure Patterns
- Product development costs have trended upward, increasing from a range of 210 million to 324 million US$ per quarter in 2018-2019 to frequently exceeding 400 million US$ per quarter by 2022-2023. Sales and marketing expenses also exhibit seasonality, with significant spikes during the fourth quarter, corresponding with major product launches.
- Operating Income Volatility
- Operating income displays significant variance, with a notable peak in June 2021 at 959 million US$. A subsequent decline was observed throughout 2022, followed by a recovery in the first quarter of 2023, where operating income reached 800 million US$.
The bottom line is influenced by fluctuating tax provisions and the emergence of new financial line items in later periods, including interest expenses and significant non-operating income.
- Net Income and Non-Operating Factors
- Net income remains positive throughout the period but fluctuates based on operating performance and tax benefits or expenses. Starting in 2022, interest expenses from debt became a recurring factor. Additionally, other income (expense), net, showed a marked increase in late 2022 and 2023, contributing positively to the income before taxes.
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