Despite a sluggishness video game market, Activision Blizzard Inc.'s second-quarter net income slightly surpassed analyst expectations, helped by its "World of Warcraft" franchise and the new "Prototype".
But the Santa Monica company lowered its outlook for the full year because two new games now won't launch until 2010.
After Wednesday's market close, Activision reported net income of $195 million (15 cents per share) on revenue of $1.04 billion. Year-ago results are not comparable since Activision Blizzard was formed last July when Vivendi SA bought a majority stake in Activision and merged it with its games unit.
After one-time items, adjusted earnings were 8 cents per share, compared with the 7 cent average that analysts surveyed by Thomson Reuters had predicted. Adjusted sales, which take into account revenue from online services for some of its games, were $801 million and line with analysts' forecasts.
"Since our merger one year ago, we have delivered better-than-expected financial performance for four consecutive quarters," Chief Executive Bobby Kotick said in a statement, calling his company's fall game slate, which includes including new installments of "Call of Duty" and "Guitar Hero" the strongest yet.
Because "StarCraft II," and the sci-fi "Singularity," won't be released until next year, Activision now expects revenue of $4.05 billion for 2009, down from earlier guidance of $4.3 billion. It expects adjusted revenue of $4.5 billion, down from $4.8 billion and less than the $4.87 billion analysts expect.
Shares were up $1.15, or 10 percent, to $12.70 in midday trading Thursday on the Nasdaq.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Activision Beats Analysts’ Expectations
- Online Games Boost Activision Blizzard’s Profit
- Activision Posts Loss, Beats Expectations
- Activision to Kill 'Guitar Hero'
- Activision Blizzard Turns To Profit
- Activision Blizzard Beats Analyst Forecasts
- Activision Blizzard Loss Widens
- Activision’s Quarter Beats Expectations