Operating Profit Margin
since 2008
Calculation
Activision Blizzard Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 22.18% | = | 100 | × | 1,670) | ÷ | 7,528) |
| Dec 31, 2021 | 37.02% | = | 100 | × | 3,259) | ÷ | 8,803) |
| Dec 31, 2020 | 33.81% | = | 100 | × | 2,734) | ÷ | 8,086) |
| Dec 31, 2019 | 24.76% | = | 100 | × | 1,607) | ÷ | 6,489) |
| Dec 31, 2018 | 26.51% | = | 100 | × | 1,988) | ÷ | 7,500) |
| Dec 31, 2017 | 18.65% | = | 100 | × | 1,309) | ÷ | 7,017) |
| Dec 31, 2016 | 21.37% | = | 100 | × | 1,412) | ÷ | 6,608) |
| Dec 31, 2015 | 28.28% | = | 100 | × | 1,319) | ÷ | 4,664) |
| Dec 31, 2014 | 26.84% | = | 100 | × | 1,183) | ÷ | 4,408) |
| Dec 31, 2013 | 29.94% | = | 100 | × | 1,372) | ÷ | 4,583) |
| Dec 31, 2012 | 29.88% | = | 100 | × | 1,451) | ÷ | 4,856) |
| Dec 31, 2011 | 27.93% | = | 100 | × | 1,328) | ÷ | 4,755) |
| Dec 31, 2010 | 10.55% | = | 100 | × | 469) | ÷ | 4,447) |
| Dec 31, 2009 | -0.61% | = | 100 | × | (26) | ÷ | 4,279) |
| Dec 31, 2008 | -7.70% | = | 100 | × | (233) | ÷ | 3,026) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
1 US$ in millions
The financial trajectory from 2008 to 2022 is characterized by an initial recovery from operating losses, a prolonged period of margin stabilization, a significant peak in profitability, and a subsequent contraction in the final year of the period.
- Initial Recovery and Transition to Profitability
- A sharp reversal in operational performance is observed between 2008 and 2011. The operating profit margin moved from a negative 7.70% in 2008 to a positive 27.93% by 2011. This transition was marked by the elimination of operating losses, which decreased from $233 million in 2008 to a loss of $26 million in 2009, before swinging to an operating income of $469 million in 2010.
- Mid-Term Margin Stabilization
- Between 2011 and 2017, operating margins remained relatively stable, generally fluctuating between 18% and 30%. Despite net revenues increasing from $4.75 billion in 2011 to $7.02 billion in 2017, operating income did not grow proportionally, leading to a margin dip to 18.65% in 2017. This suggests a period where revenue growth was offset by corresponding increases in operating expenses.
- Peak Expansion Phase
- A period of significant margin expansion occurred between 2018 and 2021. The operating profit margin climbed from 26.51% in 2018 to a peak of 37.02% in 2021. This coincided with a substantial increase in operating income, which reached its highest point in the series at $3.26 billion in 2021, driven by net revenues peaking at $8.80 billion in the same year.
- Recent Operational Contraction
- The data indicates a notable decline in profitability in 2022. The operating profit margin fell to 22.18%, a decrease of approximately 1,484 basis points from the previous year. This contraction is reflected in the operating income, which dropped to $1.67 billion, despite net revenues remaining relatively robust at $7.53 billion.
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Comparison to Competitors
Activision Blizzard Inc., operating profit margin, long-term trends, comparison to competitors
| Activision Blizzard Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 22.18% | 26.46% | 11.56% | 24.82% | 17.82% |
| Dec 31, 2021 | 37.02% | 30.55% | 17.89% | 39.65% | 20.86% |
| Dec 31, 2020 | 33.81% | 22.59% | 16.89% | 38.01% | 18.34% |
| Dec 31, 2019 | 24.76% | 21.15% | 19.39% | 33.93% | 12.92% |
| Dec 31, 2018 | 26.51% | 19.24% | 20.11% | 44.62% | 10.16% |
| Dec 31, 2017 | 18.65% | 23.59% | 21.28% | 49.70% | 7.17% |
| Dec 31, 2016 | 21.37% | 26.27% | 20.97% | 44.96% | 4.30% |
| Dec 31, 2015 | 28.28% | 25.82% | 21.47% | 34.72% | 4.51% |
| Dec 31, 2014 | 26.84% | 24.99% | 21.67% | 40.06% | 7.31% |
| Dec 31, 2013 | 29.94% | 23.34% | 20.98% | 35.62% | 5.22% |
| Dec 31, 2012 | 29.88% | 25.43% | 19.46% | 10.57% | 1.39% |
| Dec 31, 2011 | 27.93% | 30.98% | 19.20% | — | 11.74% |
| Dec 31, 2010 | 10.55% | 35.40% | 21.03% | — | 13.12% |
| Dec 31, 2009 | -0.61% | 35.15% | 20.18% | — | 11.49% |
| Dec 31, 2008 | -7.70% | 30.43% | 19.65% | — | 8.90% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).