ATVI - Earnings call transcript Q2 2019 | Activision Blizzard, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Activision Blizzard Q2 2019 Earnings Conference Call. Please note today's call is being recorded. At this time, I would like to turn the conference over to Christopher Hickey, Senior Vice President of Investor Relations. Please go ahead.

Christopher Hickey

Good afternoon and thank you for joining us today for Activision Blizzard's second quarter 2019 conference call. Kotick, and Johnson, President Bobby Durkin, and are CFO Company's of us CEO; COO; Coddy Dennis With Emerging Businesses. Rob Q&A for Kostich, Activision; of And J. President Allen President Humam join Brack, Blizzard; will us. King also Sakhnini, President of of and

while as would this based call, will believe this ultimately for on we not facts. information be that in presentation. statements Company are we The that available like forward-looking be be to of statements this to I of true, everyone prove historical may during And incorrect. the remind date making presentation them the are they to

Annual A after August discussed to number could statements differ in including and our Form our Company's The to include any undertakes the on circumstances no those that results from any These actual slide reflect in to to SEC XX-K expressed events filings, future any of factors materially Company the forward-looking XXXX today, future revisions factors and is risk release X, other circumstances publicly statements. XXXX. cause the showing. obligation forward-looking Report on those or

items, and and related unique We non-GAAP final non-GAAP in tax or restructuring the charges; exclude changes unusual to tax assets benefit measures financings fees discrete and these costs the and expenses significant related related of during items positions expenses to financial impact potential and excluded items tax accruals; resolution will stock-based related the refinancings; amounts activities. tax the financial to related expenses or related including debt of associated related laws, tax to related other which acquisitions amounts amortization call. We of of both including legal present compensation; GAAP this and intangible to provide and measures expenses and

encourage from, release, and our decision. making to GAAP These posted for further explanation a which all to on substitute superior respect www.activisionblizzard.com are refer GAAP intended non-GAAP isolation full measures. in to as for non-GAAP earnings not with Please before reconciliation an to or non-GAAP investment to results. investors a considered our consider our We be measures measures is to

also the webcast There's call. posted access earnings and the to can which be website you the following which an will with presentation

financial also non-GAAP GAAP the will results. be we both posting a addition, overview highlighting In and

now, introduce CEO, Kotick. And Bobby I'd to like our

Bobby Kotick

you, for Thank you Chris, thank all us joining and today.

our encouraged share. we Our engagement, half and In per results of this second and by in revenue we investments result. quarter investment earnings exceeded a reach, expand early prioritized for outlook to the the focus. results deepen very as prior first drive We're and key XXXX of our both franchises expect player renewed

our billions believe XXX more frequent, all and Each great new surface in year more for growth array focused results. the players business expected focus on of delivering models, player clearly of We and is potential and Our we're more our wide more existing watching across than content terms every our on compelling, than the we of franchises our units and delivering as create and reach, the million potential spend just for scratching playing games franchises. investment ever see hours fulfilling our tens even engagement the of of yet capitalize and platforms, leverage business engagement content new better of is models. engaging already before we

a we played of at great hard live that have the The to the excited best is players' millions have stream. release World this World Well our encouragement. to be responding example at Warcraft teams over of XXX and month, of are Blizzard players million World truly of welcome ensure This of over since Warcraft this a around launch and the anniversary world Classic. Blizzard proud the XX,XXX to is fans Blizzard Blizzard BlizzCon We're November to BlizzCon at via Warcraft every more is XXth hosted. the work of with its celebrating upcoming release

of greater new before cry. and At through we Mobile Store. King, ever We reach, engagement, mobile Call of players, Modern Duty the the player the app Crush was more believe release at of to intend and we it Duty ever than battle Candy the And number is and to greater one countries, it Warfare platforms, Activision, Duty will more on to before. and than App more scale achieve of investment continues Call again drive Call crush U.S. once

double-digit of now leader initial of all of of XXXX superb League We've a sales Overwatch esports watched quarter, and esports growth we industry records. ABC And break further ABC across owners. three In team the was live two second teams, the launch performing at stage broaden recorded to ESPN the Overwatch Duty in stage year-over-year. season's Call the hours premium stage Duty two viewership best Call season will the remain broadcast League and both date sold and and audience in the finals on League. X continues We to and Global the the of with the even through to

owners America, the for and to is really games to world remarkable it France, team home next their China, host season games that in the excited as owners are actually our are North third in in now host Korea, our And the well, able their year United and especially see across preparing cities organization year just markets. in games Our home league's and South the regular to markets Kingdom. around we're

net capabilities in in of period advertisers. creating the And continuing This league broadcasters, the in accomplished initiatives and great initiatives with place, to our accomplished doubled we've advertising for sports Advertising our content. actively believe year-over-year especially leverage quarter at has no for foundation content and grow is history. the advertising business, now opportunities to bookings the across incredible of are anything second like sports parts sponsors professional in-game rates. all opportunities exploring other we're esports We in three-year with these

of more our success without the we're growth our on possible our our have be prospects, our for support about compelling. excited never and of laser stakeholders. priorities the committed most our remain We're in employees grateful None focused industry both. would talented, focused, We been and opportunities

Coddy Thank you. operations quarter will And this for our the review of highlights with now you.

Coddy Johnson

communities, Bobby. second its our Diablo, Blizzard of across and our can performance with top we're strong, pursue Crush, Activision favorable year delight players. earnings exceeded our calls Overwatch, and and quarter accelerate pipeline Call and our the content this shared our recent operational Warcraft, you, business models, so we’re execution expanding that line key in Duty, resources Hearthstone, with cost outlook new at Activision In teams our development and delivery of creative, commercial and how in Candy Thank driving upside. we franchises I've increasing investment and broaden timing

several and for console, but across for These expanded on working us future content new are and of also in the reinvigorated progress Most fans. in set of and mobile new in-game flagship early both improved drove Hearthstone new innovative Call encouraging World growth, will for our teams up for of particular those we in-game Warcraft content work releases. saw Duty, QX communities content PC, franchises, underway and of

World events of net in-game bookings from offer Map in market in X since April War more throughout And delivered At versus compelling to II. frequent in-game daily strong the introduction even items work the saw trends we ongoing new Blackout quarter. our a growth more engagement for experiences improvement Alcatraz Black and Ops year-over-year

the of second the quarter the saw excitement Warcraft the the Shadows Azshara and Rise growth rise and Classic. and In launch single net response quarter versus the of Warcraft bookings Hearthstone of World great on a Rise content of the expansions player the and half imminent late of quarter new led subscribers in in update World to versus expansion to the in of substantial growth by building both prior by driven of major QX

recognize the in communities is work early and increasing these growth signs this the we of that responding, are key half. we intend progress investment and the build highlights that our our progress potential second we franchises enthusiasm of Now again continue franchises but with on as are ahead, our more to in there which

engagement, due QX, were three million. detail Starting player was million monthly key more metrics, users users provide reach, to Activision of Duty and active the but which Ops versus quarter now decline results QX XX reach, catalog, against XXX on importantly X year's Reach Call active and Black users monthly monthly last active in of monthly year-over-year a investment. our title. exclusion in our lower active was Destiny and throughout users the I'll grew with year-over-year

on events, environment. Engagement We think of increased analytics this our talent, the last year-over-year QX title and immersive as was result the we look to operations in and experiences we game over build in and XX% played in the and seasonal plan new high including and play new investment quality with QX the and tools, development across Ops is hours Black beyond. growing momentum this in-game to live continue frequency versus of

of our The channels. digital drew our re-mastering rich Racing: Activision, continued particularly of through of positive Elsewhere and sales Nitro-Fueled. at library QX to the Team critical deliver with game reviews Crash strong release strategy [indiscernible]

Shadows engaging had from Rise increased expansion release more QX. active the deeper, single on which slightly monthly users Hearthstone of of quarter. and Blizzard, Moving up new active the content to XX million in player monthly sequentially users a following

opportunities Hearthstone environment challenging, substantial competitive increasingly the is the for franchise. see While we ahead

we of their and with team a features the content build announcing team content plans to months plans. cadence on love. the that the over of look we players think will And forward expanded Hearthstone strength coming Our its pipeline QX strong new to

flex sequentially nodes. users game Workshop, in own sessions were community been to created which of played with and build engagement have of millions their enables of thousands Overwatch release following already. stable creativity and of the monthly new the their relatively modes Hundreds active increasing

around announcement late major part who substantial been the following of World And focused excitement world of Warcraft Rise expansion current on awareness content campaign August and update Warcraft Classic a not The both continues of since XX with increased subscriber XX community years Warcraft for of team over release has supporting June. community and numbers release Azshara is a in through and the be delivering beta last content in the with of will maps have date years. its Blizzard resonated of World a the World and build to midnight Classic release. players ahead players have in the of incremental of large

across the year-over-year King engagement. Candy driven Crush original in decline year-over-year to content million in and grew Candy more monthly reach up users addition monthly live King for smaller titles expand in the users Crush Friends. features and and franchise for were and the web active importantly, of active King's Candy lower most reach Candy services, generally. growth to their But X% QX, Crush Saga drive due games by to continues XXX

level recently remarkable another the In for milestone released just fact, for Saga, King Crush title. the XXXX Candy

The engagement. Candy year-over-year network continued metric, communities. of Which the engagement total to At in and for franchise Call double-digit strong brings year-over-year. growing continue deeply King at saw spent time is key me franchises to spent our per we increased time total our across growth the Duty franchise year-over-year engage and see our second the with to player the strongly from Blizzard quarter hours Activision played yearly and

have spectator provide high-quality player Bobby where well revenue the for celebrate growth strengthen company community further esports achievement As streams. highlighted, new been durability earnings and franchises and as we experiences, of and our generate as priority the the and passion

next continues audience for Call Duty Season-to-date events the year-over-year. grow into year-over-year audience momentum in we based Call League viewed around average QX in for minute with held of growing stages viewership double-digits two new new starting our during hours and league League And prepare year-over-year. well average QX. enjoy as our of Duty continued grown to city to two have XX% year, Overwatch World the

investment. key $XXX $XXX biggest well grossing in services U.S. it content, the growing been track and The bookings net exceed King's Our in advertising the last contributor with top business app player Candy two to for has sequentially bookings this dollars again quarter. year. Crush approximately this in-game million to was In-game of as on features third business bookings million remains is ramp net and continues second years metric year-over-year. doubling stores delivered King with the net franchise and

ago the franchises for Hearthstone content engagement of Duty [indiscernible]. not rest the Call the that evidence QX of that well sequentially the backups and of year largest strong in-game clear Rise grew release providing however, investing some the see communities our that expect. for of the year-on-year content of in trends the content. frequency investment players we did saw as content of of the driver flow and single-player outperforming net in inclusion fact in-game quarter, Destiny Shadows the bookings net matched paid bookings for expansion For our is the QX our and new decline yet following introduction portfolio, by the of We we're as the in of in

versus X Ops comparable War for bookings World to World a and Black on of netted year-over-year II II date net in-game are like basis. War ahead

Call forward for in plan build league, on groundwork new we teams our the to franchise We're the cities home their coming laying progress, of to in months. which with experiences on the XXXX. in great Duty games esports Looking hosting engagement with and new content the will continuing launch strong in make

on by else in is the of financials Modern launch anything continue Duty rebirth global other audio plan in for mobile very is and series although current a a launch. an encouraging, and Warfare about celebrated play early the just with the existing fans visual, in [indiscernible]. the of mobile and XX, stands soft incredible no it. On industry we data our change Canada console apart step engine from we're and new and developed The side, are for thrilled performance for the currently the Australia. fidelity, team on campaign the breathtaking. have launch PC set Built October Call indicators Warfare, players. It we On think consumer is and game a includes great in Modern word conservatively we interests and in There to

that replay know favorite game play. industry's in a than new fans we lot playground. delivers built epic announced think Ops support play XXB and returns to history of node XXX also before. and quarters note build game our in with the week Gunfight experience platform experience also the The more than multiplayer [ph] franchise. mal-stepping feature for players. with will first card the more ground the multiplayer node we game Modern And large fan XX and the scale is will ever not Duty as fight with Call of support fun close dedicated that only love, delivers an PC that Warfare from but the game The the last time XBX The Special up phenomenal the cross ultimate port will

most from seen we've Last and platform the taste one week, multiplayer against the world's prolific between get has revealed held on of in top the been our beta another gaming streamers will and play XX action the first number industry's of roof, one spot the fans response fans under multiplayer years one the strongest open the September. in in

number in including post-launch franchise a store have in pipeline of history. largest surprises that content the We after

esports important Now deliver prepared we of and we feel experiences in and across know, Call we're Duty franchise the [indiscernible]. we're to that an mobile fantastic in-game well time for

in content point core advertising to know saw QX highlights in possible of and respond investment made and ongoing momentum is the of initiatives summary, we of increased our see in the and development. improved We communities and further to franchises the good a potential to our In we right of the progress. the cadence quality in-game In enhance proof actions engagement several to that monetization as by our portfolio. this reach, our return our esports we're business we the taking growth enabled

now hand over Dennis I'll our call Dennis? discuss the performance. financial to to

Dennis Durkin

investment QX prior full-year. Thanks as equity were results, included performance and a Today timing, over QX outlook. well rate. as XXXX of outlook our lower than well an and tax ahead our I GAAP the and for QX better factors EPS Coddy. gain favorable non-got as will business as review expected cost our and Key

million, contributors was Call included were a Destiny. Team launch Crash down with revenues our the in-game Racing, of of Refueled. results successful comparable against and the year-over-year quarterly start Activision review To Key revenue Duty $XXX Nitro that segment quarter, I'll

lower Our an lower was margin effects. operating which due income operating mix was XX%, $XX points million of with percentage to revenue X and year-over-year

the offset operating $XX $XXX income due partially decline revenue was million, was Operating by in decline lower Blizzard's was million margin Blizzard a year-over-year with revenues. XX%. costs. lower in-game to revenue

ads was and is of higher with currency. Crush same doubling of sequentially bookings and income revenue million an was Candy $XXX million in over year-over-year the roughly flat King $XXX modestly consistent which business operating net and year-over-year. margin period. grew year-over-year constant Operating the XX%

Now full referencing will indicated, refer Unless otherwise to for let's figures. results. reconciliations. earnings GAAP I to to be turn Please consolidated our release non-GAAP our non-GAAP

billion of For QX $XX the generated $X.XX includes $XXX bookings May of billion, million million were net guidance. outlook. quarter we $XX GAAP of of Net revenues deferrals above above $X.X recognition our May our This the million.

QX We GAAP only is and $XX unrealized an charge which $X.XX. EPS our QX of was an gain $XX EPS GAAP of of above investment EPS non-GAAP we recognized net $X.XX and include figures which GAAP of a non-GAAP included million equity incurred of million. recognition deferrals of generated $X.XX $X.XX the EPS We on These restructuring non-GAAP to and guidance. QX in $X.XX

From perspective, a timing. to up for a million of flow a of and flow million due as $XXX working of dividend of year-over-year QX shareholders share structure of strongly XX, paid common cash XXXX. grew which year-over-year cash $XXX per $X.XX We aggregate record total operating in X% capital was capital March to cash

was $X at approximately cash of investments quarter of cash position ended net and with Our billion. $X.X approximately a we the billion end the June

second of XX. of Uldum World The is for preparing Overwatch Warcraft is half the to year. Now expansion Reforged in continue III: support let's this of August release and for and will new to latest later our team turn released events globally with launching content and slate week Hearthstone's XXXX. of WarcraftClassic outlook the Blizzard on and Saviors the

on the the across community. and of Black ops additional its Ops portfolio features Duty At with content strong live numerous for Call King features will innovative and build for X seasonal is engagement planning the and ramping will the as they year October prepare the and marketing Modern mobile on launch XX. our course important be of most release team for of ongoing support and of the of Call same Activision time, Duty Warfare,

discuss of outlook I like the specifics context. a to little Before I'd provide

the First given significant these intend see by invest was we note during driven portion lower of we of most still a would that forecast abundance in our announced franchises with potential timing upside QX and all the of I of year. earnings to than a and costs,

how same the initiatives. great business against turn shift But remains our are releases we risk encouraged continue environment to factor, dynamics ongoing by headwinds competitive. means At HX progress since the the [indiscernible] back The time, year, focus our and digital our to are increased about retail key the FX our key half as we have to of shaping are up provided evolving, guidance. last we models feel

result wider outcomes a the As possible in of range we a see second half.

that up. is said, the great about half how we all feel second shaping With

EPS maintaining outlook. net are year and GAAP full We bookings increasing outlook our our are non-GAAP the for and year

Now the to numbers. on

expect the ForQX GAAP including on deferrals of a GAAP recognition net of basis we of million. $X.X billion revenues $X

expect Forsaken billion. bookings year results Azeroth benefited model Battle expansion. included mind from of in We bear Destiny When Activision's last and that the net $X.X QX, expansion the for you

expected XX%, We expect and product costs, a amortization The of restructuring count charge approximately and EPS share only distribution software $XX XX% non-GAAP operating million. game and and XX% tax of operations rate of of $XXX $X.XX. million of including GAAP and of expenses GAAP expenses

product including expenses expenses amortization XX%. XX% game and basis of costs, distribution expect on QX a operating software For and operations non-GAAP we of

deferrals EPS for including and no of million. XX% rate expect with revenues expect basis of billion non-GAAP $X.X a of impact GAAP a we net GAAP On $XXX $X.XX on GAAP We deferrals. XXXX from non-GAAP tax

XX%, XX% of net costs, charge software of only including billion, We bookings and restructuring a $X.X approximately amortization operations, of product GAAP million. of expenses $XXX distribution operating game expenses expect and

non-GAAP rate EPS GAAP a XX%, share and and million count of of $X.XX. expect of We GAAP tax $XXX

we expenses of For product amortization XXXX operations expense cost, distribution and on expect a software XX%, non-GAAP and XX%. operating game basis of including

non-GAAP tax $X.XX. deferrals EPS $X.XX We includes which expect GAAP of XX% a of and non-GAAP rate

the in across we summary, we we positioned take growth in to progress company franchises. So the many to of our make QX see as advantage continued opportunities

in class model and platform owned creates business growth. leading developer to a talent, direct for of powerful geographic our a franchises, digital connection longer-term and combination consumers, Our foundation best diversity

that has and We taking against many deliver deliver are as dynamic years. I is the and still delivery strong characterized will the quality the long-term. right we're [indiscernible] position to the and executing to ever, as our that content and world-class value execution remain our shareholder plan results over for steps us competitive company environment confident

Rob welcome the as the Now our for Operator? Q&A they portion I business leaders call. Humam, of and joint J,

Operator

Certainly. And we'll to first SunTrust. go of [Operator Thornton Matthew Instructions]

Matthew Thornton

World Azshara afternoon standpoint? talk and as patch as question. introduction taking Thanks. you Warcraft, that and you're half the just the into the here for the seeing mode can second think how lit you from little on just good of classic a of from just an the thanks bit Maybe about recent Rise Hey, just the engagement is sustainable of well

J. Allen Brack

is love of the game deep recent first experiences. of demand updates this the Azshara to broadly, a content Hi, sort of think for of ways J, the have game. of is looking of large on Warcraft expansions meet players always World update, about is value recognizing kind the and the representation more we between The the for good for of team that how more Rise new the

of also Rise Azshara. part for both content, increase shown effort of have to players available Classic support is While lot Classic our of and a

for for years announce Regarding personally to experience many players it BlizzCon. we've of of was version Classic to and the play me really their the effort a desire great heard at start original specifically, that game from the

undertaking. think Overall, on been We're of the for technology XX. a creating this the really team has launch the also August and we're seen lot significant excitement work that really gone player that fed game a overall really I the has the the into base. from the they've has has been community There but a from off challenges, lot of of proud excited pretty

is players automagically the included way maintain connection really to available it's while If game. our with is your you to the a to and a so are content greatly subscriber, increasing Classic good subscription,

number. We've wow XXX global that's and players million had over a experience

community So part opportunity they, it's and the players who was. the many a once were as great re-experience it for return of to once as game

your specific to but to exceeded there launch. it's Now it's and expectations Classic excitement post sustained is our engagement lot around a really of difficult question, really already, predict

have to us seen drive really see, see work for awareness that's I continue you'll we'll is coming and close We really to around a it. launch interest, strong appreciate you of my in to the question. the thank the heart. I Classic something lot weeks.

Christopher Hickey

we the next Operator, can have question please?

Operator

Yes. And that will come from Brian Nowak of Morgan Stanley.

Unidentified Analyst

Matt taking Hi, Thanks for on it's on Brian. for the questions.

first MAU Thanks. just for King half? the business, should at vectors can the So the of here? key think heading monetization sort you and turning And sort second core, from go we in-game into trends is looking one about drivers of over how and the then growth to

Humam Sakhnini

Humam. Hey, question. for Thank you it's the

to a marketing sequential we growth, been quarters. call a over on in and have in on less tried mentioned QX bit so that after disciplined the last as user MAU MAU King So I slow quite QX acquisition QX quarters MAUs couple well to to overall of fell in we be of and the million and spent XXX compared

figure But important trends. with necessarily see the MAU don't underlying the headline you

and share for represent continuing been year-on-year trends the have Candy titles ones smaller versus of and the up overall new Crush, Candy to year-on-year our web most look and larger the at that franchise which largest mix in mobile is and the portfolio, improving. our One important were of the [indiscernible] with

we in and kind I your long-term content invest question growth Candy XXXX to me that saw franchise year-on-year grew doing that and are the happening And the XXXX then players. about features - we're QX, for new our it Crush monetization in how bookings continue story these and and on in in specifically trends again the really franchise started those QX. to has are what for in And and of on

different We're original and engagement content adding than just the heard are that fresh everybody and But players level titles engage that more they great features the X,XXX for you or titles Crush, content much the starting to - innovative enjoy that for levels. life creates many milestone where at our we ways released just whether our ops know Candy for that game. drives are offer we games, our to So, player we is means ways with adding in in level and X,XXX. just

and all monetization. this, adding of So, on we're new features, of top which drive

look features planned of continue features I to monetization. forward, a to strong as to these for they coming and pretty our quarters also will deliver engagement we have the So pipeline these drive and players

Christopher Hickey

have Operator, question next can please? we the

Operator

course come Of will question Goldman of Sachs. that and Mike Ng from

Michael Ng

thank the of little bit Hi, you for if was a more talk I very you the Call just question. wondering could about future much Duty the of franchise.

be be of Specifically, it for Duty model might Duty may toward necessarily consistent that years. franchises of that have service toward live titles that multiple going vision your the the to with seems over that Call a focus Call We games. with like? Thanks. potential annual [code] of a looks the sustain what's business are [ph] releases Would few doesn't perpetual that instead but future involve

Robert Kostich

good steps and for there's franchise Thanks the important I some a taking things Rob. we're it's grow overall, few mentioned here. that a Mike, one it's question because to the and probably at

mobile, I if We're of Duty one. title. part this future. a building for haul see to globe critical the PC launches of huge Call overall and still a it's content obviously ongoing live going Now long new do fun our services our an look But on side, console and on the stream be players as we events, the of having keep around

fan. engagement continue bring been to be our have to they community experiences because huge new for are, releases a a new These and of drivers our robust set

on want we We're very well. committed here said, player So build also time to that obviously as engagement front. over this

that a modern You're warfare. with going in first to few start seeing ways,

We're to Coddy season mentioned pass. platform play having a also not cross going we're as and have

can want build and to this everyone where we to massive and go forward. each Now come day is one every and together this we're fun as have important because we doing community community and that support

We're content we launch to to ways events are play really that fans post and new investing going significant think love. resources

really of incredible we're community. looking modern great for warfare, beginning our is, it's what we launch forward I'd to is game. believe it the journey And of an a say So the Thanks.

Coddy Johnson

Coddy. jump just I franchises Call just is also Mike. of the to Hey, broadly, broader talk because It's just more I to in not think portfolio, question If the the really our we key engaged. question, on about might and that the to with rest really Duty, the players recognize is of and how about we player [ph] content like play core ongoing services. really think keep game live that And but features coupled the services [frequent] engagement great

launches players, many today, investment major the in that and that very really the meant live that initiative as seeing heard our refresh results to resources and services. do the to about are reach innovation, you've the resources franchise, said, earlier as franchises see bear think and out way to so across bringing drive we're to to to And franchises there we're That to the a franchises. and our we're against new are putting effective into of putting important upfront our expand community we

drive major can community. we and refresh best additional and see the franchise in the we investment, As of then both expand to get the get services launches live to the an upfront really and We innovation way can think you worlds. ongoing

to course. you'll telling continue see, you'll us, due about more launches those see and from forward looking we're big to in So you

Christopher Hickey

Thanks, Mike. next please? Operator, the question can we have

Operator

will question Malde Kunaal from Equities. Next of come Atlantic

Kunaal Malde

and on kind also in you your Could Overwatch format of home-and-away next talk to effect the do expect games of about you. the what League the year? Thanks. expand have you comments quarter about performance thank Hi,

Dennis Durkin

Hey.

outside, any of take I'll one. viewership the any - Dennis. it's obviously the of league a league Kunnal it's like are -- Hi, get to the date great TV, this question, and great and because great from we I the sports is have streaming we partners we're sometimes League, bet. a indicator that. on It's You also on hard health know because specific some Overwatch

actually in up stages You you which look of XX%, measure comments the were the probably what up that was Coddy's heard over up two best, minute held looked best at with U.S. average the is season-to-date when in the audience strongly at encouraging Bobby and XX%, so QX we when minute and audience is viewership there. that average the the trends OWL

that kind through well viewership in And that audience is is every nearly other parse as traditional more year growth segments. younger our decline in we in then that's major demographically, seeing seeing when audience importantly even U.S. those a we're and sport when of

highlights really to to year expanded league, the this interest and enhance driving some how that really think starting the the also places more results. done help in is experience deliver this is we've roster work more I So for viewing the that

digestible experience and it's is we're of improvement a market There's key area room done we not not that's critical mass as but the broadcast a lot say audiences. to Now to easily that on us for this compelling viewing still for to think make for focus only further in journey. continuing the

We obviously progress next it viewership those and solid Atlanta On we're yes spectators and broadcast. brought the the stands our second in home-and-away well of format, Dallas did local fan excited home those atmosphere will areas of question translated the that part interest on of thousands arena well. in a indicators the year. home to the of for actually this quarter your only of many see that We I as but broader big driver think around arenas is think some also in be respective not markets, the early for into with

I out the not both league, So Call out format next the as league, Overwatch of Duty league roll well well. year the for that we only for across bodes but think for as

still to So, of a do, encouraging. plenty but early to early there's yes, work it's are and innings use analogy very signs still sports

Christopher Hickey

next can Operator, Kunaal. the Thanks please? question we have

Operator

Ray from come Research. of will Consumer that Stochel Edge And

Raymond Stochel

taking so how guys from pace Thanks. One call the of consumers increasing around it, and Blizzard, an balance you Polish, content? Great, as you on speed Blizzard question. demands do thanks my for

J. Allen Brack

time. is This it’s that we and faced a a is long high spend this to There personally. on how considering Jay, content question challenge and of me the really demand it's of successful is Blizzard a priority teams time for a be for lot a game a

made year. and our as over reasons of the doing the priorities us very this be well at some think developer years. as that the the the talent really have for driving it's could I focusing we same amount one headway At clear increasing was better, of on think company that I we time,

of various and really the feel people is features in that to levels. have quality initiatives critical the more process we reaching to Having It's critical. is the support we iteration that the place really various us -- right the

our positively on about content delivery how both some World and take ultimately, by new we're for to across for going quality. It's communities. and very quarter, Blizzard ramp just further up this both those are seen time with the Hearthstone received content early to we're of happy franchises, but progress. that's And Warcraft significant thinking We've

meeting us talk level expectations that's polish. as of and we expectations as in of to both frequency well about the of in player content Internally, the and and terms craftsmanship, about our

game across we games, release players, Blizzard that can the when to board. start that content not to look quality our they say so but for forward game Blizzard aiming Blizzard to means more it more And we're more experiences just

Christopher Hickey

Operator, question next we Right. have the can please?

Operator

Giaimo that And will Alex of from Jefferies. come

Alex Giaimo

taking the to for an King at that overall the advertising time? over scale in Great, business and to confident question. update whether hoping on the opportunity thanks get ability I you're was just still

Humam Sakhnini

Alex. Humam. question. Hey, the Thanks It's for

you So we of I and ongoing still going have advertising a I'm color growth. momentum lot little in to substantial for right a now opportunity on see bit give a that. of

build returning demand as this -- proposition new continuing ad we are this, safe we sales and both that's in side, we're premium recognize brands and So on the advertisers. are seeing environment the is to And the our seeing and differentiated product capabilities. for

and introduced rescue working of title into -- And recently at we're number side, partnerships well the help a of on supply the we and the Candy Saga fill saga have as Friends we available. that we half making with Candy engine platforms are our ads putting ads on year. Crush strong newest So back Jelly around the ad Candy into that in

good impressions. both demand, we're on and and supply continuing to made progress we've increase So

track And King QX. mark the doubled the year-on-year partners educate within I that talked XXX proposition. As ad work strength million this to again to that about. value we're bookings exceed planning well in to brands you heard on of And we're about more continue net and as the and I grow ahead, look

Coddy Johnson

in Hey, I Coddy, well. jump may as Alex. It's

that moment, king's Humam that are platform credit and to they've talked Here, a and the about gave ad capabilities it's we that for tremendous just a that built because stepping set on. delivering just really color results today back of some more

business. the bring We the opportunity now to this elsewhere also capability have in

further what where across it at We working potential learned in of so company think momentum there's makes overall lot rest a sense, there certain rest for to also for potential just plenty and and the the are looking the and but business we've the including business. there's of across we of on actively the experiences is growth new ads us, at existing mobile King, we think esports deploy not inside this

Christopher Hickey

we Operator, Alex. next Thanks, please? have the question

Operator

next of Mike Hickey question come Company. the will from The And Benchmark

Mike Hickey

guys, Hey, my Bobby, nice thanks Coddy, Chris, Dennis, questions. for quarter, taking

Just have re-masters curious, there a IP, of Activision library work perhaps opportunity your obviously in with. you huge to

So you. is further I opportunity Thank re-Masters re-Masters for future? the what guess just how the and business meaningful in

Robert Kotick

that one. Rob, I'll take Hi it's Mike,

beloved great games seen years. results at of have So over from we some Activision last of re-mastering the couple these

and them for job platform. a Team have at Sane are credible Racing, today's modernizing Crash they games really If done and Trilogy, you and all great Crash teams Trilogy Spyro in our look Reignited

Now fantastic. the been to have player response due these

million you Sane say, one Crash if that I'd Trilogy; sold through at example, for And and look copies. over XX

a franchises look a our nature of going I'd you our you reaffirming the bottom what's these important there to experience again. obviously really and having impact IP mentioned, for So big IP a there's on library, real as of want say to in we us. at that lot are there, enduring are is but impact they it's line the fans when think And

announcements. for say future I'd tuned what So some now stay

and also opportunities new lot But of are pure within content now innovate totally think IPs. to re-masters just about these beyond a

there So Activision, a the opportunities lot have company, great the across IP as growth library more broadly time within ton business did it, for we of over our is and the company on IP. the where collectively think of about based of frankly

Christopher Hickey

Thanks, Operator, next can the have question please? we Mike.

Operator

Piper And come that Jaffray. Mike will Olson of from

Michael Olson

afternoon. good Hey,

is IP great development difficult in track creating record guys And that just Speaking great have you're you can general? Thanks. there the opportunity how about new IP, know of how about new you do. a we but thinking and to IP wondering, of talk

Coddy Johnson

of first established and have large Coddy. can that scope and strongly Sure. there passionate feel initiatives, This for we to franchises thinking pausing to and it's of recognition see about inside Thanks we question. do but as to and them. build Thanks, do beachheads emphasize the of we pause I tremendous to Happy want on global with Mike. number new innovate where result feel IP talk is that just fortunate already those is because around worth communities there a

the where we true broadly will feel into do it larger competitive should a that significant than substantially we're you really execute we and established gaming for not And potential, do and on the large but and entertainment give that. company and just franchises is leaning is be think be this ourselves, advantage in today,

focused only on we're mean existing doesn't it said, That the portfolio franchises.

we we have like records businesses. We of IP out process a new and the the top a IP the or of we've when -- for have as that of new screen one And mentioned, is across rigorous think you that reason put new very through of each which underway projects had track best part a we ideas. putting

most increasingly it are of industry the of fans because commercial, at testing at prototyping and But of a this significant. and make the all creative, every that and high like approach And development stage at way at from demands honestly one of and the through bar. many the ideas we looking don't through. think design is right it's rigorous maybe We're the the build

returns. far process, launch not by drives can about model sustaining have way, sustaining You but of the for It's disciplined it it's business the the and by players in the because also the best experience the be IP, far the it just That's launch grow. it's you best it's time. what really and when to about over by growing the

also assured here bear rest be we our and initiatives future. about we so, for, new success to that's means talk plans look track our us our time that we we pretty you the bring IP over given And record, want to what it to it confident high and and I But about ability that for too underway have early. feel games bar means don't takes to have

Christopher Hickey

one have we last time for Operator, Mike. question, Thanks, please.

Operator

question come last America. will [indiscernible] Bank that of And from Ryan of

Unidentified Analyst

taking afternoon. questions. good for the Hey, Thanks

ones, if I two may. Just quick

grossing be there soft the regarding maybe mobile, getting players top feedback is anything you for can data you of could share the And of XX the Call in you're from approval launch talk can the and First are top on or Duty and Call partners Thanks. mobile? China hey XX the whether lines seeing along regarding Duty this you're early there in for process on game the of like games what over mobile, briefly on Diablo? you there? And your suggesting, doing then testing of some

Robert Kotick

it's Rob. Ryan, Hey,

wide Call of to the when modes ability authentic of an including the strong of it Call Australia, pre-registrations Canada we're across play us game yes, fun indicators, and in soft to and game setting anticipation at organic few look seeing and results launch in across are and very has all the think very globally. play, I obviously for retention. suggests very Duty the weeks for key real and we variety early a and to strong So and so metrics, the and the high a characters demand now Duty mobile loving and game the reacting the promising Players been and last far, installs

and So another the Call the time. think about people thing as the experience is of encouraging first us, said, interesting signs millions I do for early tens for Duty here mobile, is to are think I like for of now we which opportunity of there

in that franchise's we right, a get be Now, step the for us change reach. could if this

know, revenue. that several generating mobile are action are right now reach in there games you significant As

not ahead as of to ourselves careful so potential this we're feel have about when does what are seeing being said, get game but us. initiative things, be to and that meaningful new mentioned, very always All a comes particularly to to this good I these So do it forecasting far. is we we

into to community's for as game and, about as much the question. very the not this for we're going prudently to We've shouldn't elsewhere. asked working and have the to we're Now planning been there as and too China process, this China longer. keen through expect, they wait wait hands soon you but you'd it's get ready Thanks launch game to

Christopher Hickey

joining towards for seeing Thanks today. and appreciate of everyone and to fall we thanks October. interest the your you We person right, us at many and of BlizzCon forward greatly end in-game this in All support look hopefully again.

Operator

for that, And your call. We would with participation. that again like does to conclude ladies and thank gentlemen, you today's

You may now disconnect.

Activision Blizzard (ATVI) 8 Aug 192019 Q2 Earnings call transcript