For the quarter ended March 31, 2017 , Activision Blizzard's net revenues presented in accordance with GAAP were a Q1 record of $1.73 billion , as compared with $1.46 billion for the first quarter of 2016, an increase of 19%. GAAP net revenues from digital channels were a Q1 record of $1.39 billion , growing 50% year-over-year. GAAP operating margin was 29%. GAAP earnings per diluted share were an all-time quarterly record $0.56 , as compared with $0.48 for the first quarter of 2016, an increase of 17%.

For the quarter ended March 31, 2017 , on a non-GAAP (redefined) basis, Activision Blizzard's operating margin was 43% and earnings per diluted share were an all-time quarterly record $0.72 , as compared with $0.58 for the first quarter of 2016, an increase of 24%.

For the quarter, operating cash flows were a Q1 record of $411 million , up 22% year-over-year.

Please refer to the tables at the end of this press release for a reconciliation of the company's GAAP and non-GAAP (redefined) results.

Bobby Kotick , Chief Executive Officer of Activision Blizzard , said, "This quarter we delivered record revenues, earnings per share and cash flow, and over-performed guidance."

Kotick added, "Among the drivers of our results was Overwatch®, which now has over 30 million players globally. The Overwatch League™ is gaining momentum and we're excited to offer our community of players the best professional league experience. Destiny 2 and Call of Duty®: WWII are also coming later this year, and both reveals have been very well received by fans."

Selected Business Highlights:

Audience Reach

Activision Blizzard had 431 million Monthly Active Users (MAUs) A in the quarter.

Activision Blizzard had 431 million Monthly Active Users (MAUs) in the quarter. Blizzard had the biggest Q1 online player community in its history with MAUs A of 41 million, up 58% year-over-year. Overwatch continues to be Blizzard's fastest growing new franchise, reaching over 30 million players globally less than a year after launch. Overwatch is now the 8 th billion-dollar franchise in Activision Blizzard's portfolio. Hearthstone ® MAUs A grew year-over-year and quarter-over-quarter, despite no content releases in the first quarter, and recently surpassed the 70 million registered player milestone life-to-date.

of 41 million, up 58% year-over-year. continues to be Blizzard's fastest growing new franchise, reaching over 30 million players globally less than a year after launch. is now the 8 billion-dollar franchise in Activision Blizzard's portfolio. MAUs grew year-over-year and quarter-over-quarter, despite no content releases in the first quarter, and recently surpassed the 70 million registered player milestone life-to-date. Activision had 48 million MAUsA in the first quarter, down year-over-year primarily due to expected softness from last year's Infinite Warfare™ release. Activision expects to release Call of Duty: WWII on November 3, 2017 . Last week's reveal was the most watched livestream in Call of Duty history, and the reveal trailer became the fastest video to reach 10 million views in Call of Duty history. Though early, initial pre-orders for Call of Duty: WWII are off to a very strong start. Activision and its partners at Bungie expect to release Destiny 2 on September 8, 2017 and welcome PC players into the Destiny universe for the first time. Response to the Destiny 2 reveal was very encouraging, and pre-orders are off to a very strong start.

King had 342 million MAUsA for the quarter, down year-over-year, but with better per user engagement and investment. King had two of the top 10 highest-grossing titles in the U.S. mobile app stores for the fourteenth quarter in a row.1

Deep Engagement

Blizzard had record first-quarter time spent, up a double-digit percentage year-over-year. In late January, Overwatch had its fourth seasonal event, Year of the Rooster , to celebrate the lunar new year . The event drove engagement records for the game. Blizzard launched a fifth seasonal event in April, Uprising , including a player-versus-environment game mode which drew record time spent. With a regular content and feature update cadence, World of Warcraft ® time spent grew year-over-year in the first quarter. Hearthstone set a new all-time Daily Active Users (DAUs) B record last month with the release of a new expansion, Journey to Un'Goro ™ . In April, Blizzard also launched Heroes of the Storm ® 2.0 , bringing players back into the game.

had its fourth seasonal event, , to celebrate the lunar new year . The event drove engagement records for the game. Blizzard launched a fifth seasonal event in April, , including a player-versus-environment game mode which drew record time spent. With a regular content and feature update cadence, time spent grew year-over-year in the first quarter. set a new all-time Daily Active Users (DAUs) record last month with the release of a new expansion, . In April, Blizzard also launched , bringing players back into the game. King's time spent per DAUB is now a record 35 minutes a day, up quarter-over-quarter and year-over-year. King's DAUB to MAUA ratio is at its highest point since 2013, and DAUsB were steady quarter-over-quarter.

Player Investment