Activision Ends 2020 in Pole Position
This month, Activision Blizzard (NASDAQ: ATVI) reported its fourth-quarter and full-year 2020 earnings. The gaming studio conglomerate generated record annual cash flow and net bookings (the video game equivalent of sales). However, the highlight of the quarter came from its Activision studio, which owns and operates the Call of Duty franchise. The segment knocked it out of the park for the quarter and fiscal year and has set itself up for many years of future growth. Here's why.
Before looking into why Activision had such a great quarter, let's take a look at some of the numbers it put up. In 2020, Activision generated $1.87 billion in operating income and had a staggering 47% operating margin. Call of Duty revenue (the majority of Activision's business, and really all that investors should care about) doubled year over year in 2020, with operating income growing at 120%. All else equal, those are some fantastic numbers for a business of Activision's size and scale.
Image source: Getty Images.
Source Fool.com
