Published May 09, 2011
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.
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.
Activision Blizzard shares rose 9 cents to close at $11.53 on Nasdaq.