Activision Blizzard Inc. said its fourth-quarter profit fell
51%, but other results for the videogame maker came in better than
analysts expected.
The company said it expects strong results this year, but
forecast adjusted profits and revenues for the current quarter and
full year below Wall Street estimates.
Activision's shares rose more than 9% in after-hours trading,
recently trading at $18.80, up $1.63.
The company said that despite the sales declines, its top games
held their own against competitors. The company said its war
simulation shooting franchise "Call of Duty" and "Skylanders," a
line of toys that interact with videogames, were the second and
third best-selling products in North America and Europe.
Activision's results appear to mirror those of competitors which
have struggled to maintain sales and profits amid dramatic changes
in the videogame industry.
The Santa Monica, Calif., company said net income in the quarter
ended Dec. 31 came to $174 million, or 22 cents per share for its
quarter ended Dec. 31, down from profit in the year-earlier period
of $354 million, or 31 cents. Revenue declined 14% to $1.52 billion
from $1.77 billion.
When adjusted for stock-based compensation and other items,
Activision's profits for the fourth quarter were 79 cents per
share, while adjusted sales were $2.27 billion. Analysts on that
basis had been expecting the company to report earnings of 73 cents
per share on $2.22 billion in sales, according to Thomson
Reuters.
For the current first quarter, Activision said it expects to
earn an adjusted 9 cents per share on sales of $675 million,
slightly below analyst estimates of 11 cents per share on sales of
$679 million.
For the year, Activision forecast a profit of $1.26 per share on
$4.6 billion in revenue, also slightly below analyst estimates of
$1.27 per share in profits on sales of $4.65 billion.
Write to Ian Sherr at ian.sherr@wsj.com
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