Earlier today we reported that the rumoured layoffs at Activision Blizzard were in fact true, as the company looked to restructure in order to boost profits. That said, we now have the earnings report for Q4 2018 that we were all waiting on, detailing figures for the quarter ending on December 31 last year, and despite high numbers, these are still below the expectations of the company.
Net revenues sit at $2.38 billion USD, for example, marking an increase from $2.04 billion year-on-year, with digital net revenues also increasing from $1.43 billion to $1.73 billion in the same period.
When looking at net bookings though, this increase from $2.64 billion to $2.84 billion was below the company's expectations, with the net bookings for the year as a whole sitting at $7.26 billion as well, again sitting below expectations despite being an increase on the $7.16 billion for 2017.
Elsewhere at the year's end net revenues increased from $7.02 billion to $7.5 billion year-on-year, while digital revenues increased from $5.48 billion to $5.79 billion in the same period.
In short, these aren't bad numbers and don't represent a sinking ship by any stretch of the imagination, but with the layoffs and recent drops in share value (something other companies like EA are experiencing too), it's not entirely surprising to see Activision Blizzard restructuring. After all, they are assigning 20% more developers to key titles like Overwatch and Call of Duty throughout the year.
Bobby Kotick, Chief Executive Officer of Activision Blizzard, said that "while our financial results for 2018 were the best in our history, we didn't realize our full potential. To help us reach our full potential, we have made a number of important leadership changes. These changes should enable us to achieve the many opportunities our industry affords us, especially with our powerful owned franchises, our strong commercial capabilities, our direct digital connections to hundreds of millions of players, and our extraordinarily talented employees."
Is restructuring the right move for the company?