Estimates suggest King may have stabilised its revenue decline

Estimates suggest King may have stabilised its revenue decline

Activision-Blizzard (NASDAQ:ATVI) finally completed its $5.9 billion acquisition of King on 23 February.

That's 53 days through the 91 day 1 January to 31 March financial period.

For that reason, Activision-Blizzard has only released King's revenue figures from the period 23 February to 31 March.

They were $207 million.

In comparison, for the full Q1 period in 2015, King recorded sales of $570 million.

While sales for the previous Oct-Dec 2015 Q4 quarter were $461 million.

Some assumptions

Now - and obviously this is a back-of-the-fag-packet-calculation - King generated $207 million in 38 days.

If we assume similar day-to-day revenue (that's the period 23 February to 31 March), we come up with a date rate of $5.4 million/day.

Applying it to the entire 91 day FY16 Q1 period, King's Q1 sales would have been $496 million.

Hence, its sales would have been up 0.2% quarter-on-quarter, and down 13% year-on-year.

As a broader comparison, King's 2015 sales were down 12%.

But quarter-on-quarter comparison suggests that the company may have halted its declining sales, although we won't get confirmation that's the case until Activision Blizzard releases a full quarter of King revenues.

That will happen in 3 months time.

As an aside, the stabilisation theory is backed up by King's latest monthly active user numbers. During Q1, it was 463 million, up 3% quarter-on-quarter.

[source: Activision Blizzard IR]

Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.


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