Activision Blizzard's Quarterly Profit, Sales Rise

Features Reuters

Activision Blizzard posted higher profit and revenue in the fourth quarter, driven by sales of online content that users downloaded to accompany its "Call of Duty: Black Ops" video game.

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For the quarter ended March 31, Activision Blizzard said income rose to $503 million, or 42 cents per share, from $381 million, or 30 cents per share, a year earlier.

Adjusted for digital revenue, the company said earnings per share was 13 cents, up from 9 cents a year earlier.

Sales rose 11 percent to $1.45 billion from $1.3 billion a year earlier. On an adjusted basis for digital revenue, sales grew to $755 million from $714 million a year earlier.

The company raised its full-year 2011 earnings outlook to 73 cents per share from 70 cents. It estimated revenue of $3.95 billion this year, up from its previous $3.90 billion forecast.

Chief Executive Bobby Kotick said in an interview that the company's digital revenue, which comes from online games such as "World of Warcraft," grew by $100 million year over year. He said sales of the expansion pack "First Strike," which accompanies "Call of Duty: Black Ops," were up 20 percent from sales of "Call of Duty: Modern Warfare 2" during the year-ago period.

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Activision Blizzard shares rose 9 cents to close at $11.53 on Nasdaq.

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