SANTA MONICA (dpa-AFX) - Video game publisher Activision Blizzard Inc. (ATVI), Thursday posted a fourth-quarter profit, compared to a loss last year, helped mainly by the absence of an hefty asset impairment charge. Excluding charges, earnings for the quarter improved and topped estimates, driven mainly by more-than-anticipated revenues and lower expenses.
Moving ahead, the company issued an outlook for first-quarter and full-year of 2012, which is expected to miss current estimates.
Activision Blizzard's profit for the quarter was $99 million or $0.08 per share, compared to a loss of $233 million or $0.20 per share last year.
On an adjusted basis, earnings improved to $0.62 per share from $0.53 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude one-time items.
Activision Blizzard, the publisher of the 'Call of Duty' video-game series, said revenues for the quarter dropped to $1.41 billion from $1.43 billion last year. Adjusted net revenues were $2.41 billion compared to $2.55 billion last year. Wall Street analysts on a consensus estimated revenues of $2.20 billion for the quarter.
Activision Publishing's Call of Duty: Modern Warfare 3 was the #1 best-selling title in dollars in aggregate across all platforms in the U.S. and Europe for the calendar year, the company said in the statement.
Chief Executive Bobby Kotick said, 'Blizzard Entertainment's World of Warcraft maintained its leadership position as the #1 subscription-based MMORPG (Massively multiplayer online role-playing game) around the world and Activision Publishing's Call of Duty: Modern Warfare 3 was the #1-selling game.'
Total costs and expenses for the quarter dropped to $1.38 billion from $1.82 billion last year.
Looking forward to the first quarter of 2012, the company expects earnings of $0.22 per share, and adjusted earnings of $0.03 per share. Analysts currently expect earnings of $0.14 per share for the quarter.
Activision expects first-quarter net revenues of $965 million, and adjusted net revenues of $525 million. Analysts currently expect revenues of $771.67 million for the quarter.
For the calendar year 2012, the company expects earnings of $0.63 per share, and adjusted earnings of $0.94 per share. Analysts currently expect earnings of $0.96 per share.
Activision expects 2012 net revenues of $4.15 billion and adjusted net revenues of $4.50 billion. Analysts currently expect revenues of $4.55 billion for fiscal year 2012.
Activision Blizzard has authorization for a new stock repurchase program of up to $1 billion effective April 1, 2012. The company's $1.5 billion share buyback program authorized in February 2011 is set to expire on March 31, 2012. Activision also declared a dividend of $0.18 per share, payable on May 16 to shareholders as of March 21.
ATVI closed Thursday' trading at $12.66, up $0.11 or 0.88%, on the Nasdaq. The stock further gained $0.09 or 0.71% in after hours trading. Trading volume for the day was 14.8 million shares, above the three-month average volume of 10.2 million.
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