Analysis of Reportable Segments
Activision Blizzard Inc. operates in 3 segments: Activision Publishing, Inc. (Activision); Blizzard Entertainment, Inc. (Blizzard); and King Digital Entertainment (King).
Segment Profit Margin
Activision Blizzard Inc., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Activision Publishing, Inc. (Activision) | 40.21% | 47.93% | 47.39% | 38.31% | 41.13% |
| Blizzard Entertainment, Inc. (Blizzard) | 31.06% | 38.20% | 36.38% | 26.99% | 29.90% |
| King Digital Entertainment (King) | 40.25% | 44.19% | 39.60% | 36.44% | 35.95% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Activision Publishing, Inc. (Activision) | Activision Publishing, Inc. (Activision) segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Blizzard Entertainment, Inc. (Blizzard) | Blizzard Entertainment, Inc. (Blizzard) segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. | |
| King Digital Entertainment (King) | King Digital Entertainment (King) segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Segment Profit Margin: Activision Publishing, Inc. (Activision)
Activision Blizzard Inc.; Activision Publishing, Inc. (Activision); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating income | 1,317) | 1,667) | 1,868) | 850) | 1,011) |
| Segment net revenues | 3,275) | 3,478) | 3,942) | 2,219) | 2,458) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 40.21% | 47.93% | 47.39% | 38.31% | 41.13% |
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).
1 2022 Calculation
Segment profit margin = 100 × Segment operating income ÷ Segment net revenues
= 100 × 1,317 ÷ 3,275 = 40.21%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Activision Publishing, Inc. (Activision) | Activision Publishing, Inc. (Activision) segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Profit Margin: Blizzard Entertainment, Inc. (Blizzard)
Activision Blizzard Inc.; Blizzard Entertainment, Inc. (Blizzard); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating income | 625) | 698) | 693) | 464) | 685) |
| Segment net revenues | 2,012) | 1,827) | 1,905) | 1,719) | 2,291) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 31.06% | 38.20% | 36.38% | 26.99% | 29.90% |
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).
1 2022 Calculation
Segment profit margin = 100 × Segment operating income ÷ Segment net revenues
= 100 × 625 ÷ 2,012 = 31.06%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Blizzard Entertainment, Inc. (Blizzard) | Blizzard Entertainment, Inc. (Blizzard) segment profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Profit Margin: King Digital Entertainment (King)
Activision Blizzard Inc.; King Digital Entertainment (King); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating income | 1,121) | 1,140) | 857) | 740) | 750) |
| Segment net revenues | 2,785) | 2,580) | 2,164) | 2,031) | 2,086) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 40.25% | 44.19% | 39.60% | 36.44% | 35.95% |
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).
1 2022 Calculation
Segment profit margin = 100 × Segment operating income ÷ Segment net revenues
= 100 × 1,121 ÷ 2,785 = 40.25%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | King Digital Entertainment (King) | King Digital Entertainment (King) segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Segment net revenues
Activision Blizzard Inc., segment net revenues by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Activision Publishing, Inc. (Activision) | 3,275) | 3,478) | 3,942) | 2,219) | 2,458) |
| Blizzard Entertainment, Inc. (Blizzard) | 2,012) | 1,827) | 1,905) | 1,719) | 2,291) |
| King Digital Entertainment (King) | 2,785) | 2,580) | 2,164) | 2,031) | 2,086) |
| Total | 8,072) | 7,885) | 8,011) | 5,969) | 6,835) |
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).
Segment operating income
Activision Blizzard Inc., segment operating income by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Activision Publishing, Inc. (Activision) | 1,317) | 1,667) | 1,868) | 850) | 1,011) |
| Blizzard Entertainment, Inc. (Blizzard) | 625) | 698) | 693) | 464) | 685) |
| King Digital Entertainment (King) | 1,121) | 1,140) | 857) | 740) | 750) |
| Total | 3,063) | 3,505) | 3,418) | 2,054) | 2,446) |
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).