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Activision Blizzard Inc., the largest video game maker, said third quarter profit tripled on sales of titles such as "StarCraft II." The company's fourth quarter forecast fell short of analysts' estimates.
Net income jumped to $51 million, or 4 cents a share, from $15 million, or 1 cent, a year earlier, Santa Monica, California based Activision said today in a statement. Excluding some items, profit of 12 cents topped the 9 cent average estimate of 21 analysts in a Bloomberg survey.
Game players snapped up the latest update to "StarCraft," a personal computer game. Activision sold more than 1 million copies of "StarCraft II: Wings of Liberty" on the first day. The "Call of Duty" title remained a top 10 seller worldwide in the quarter, the company said, citing industry researchers.
"We're benefiting from having a very small number of very high quality releases," Chief Executive Officer Bobby Kotick said in an interview. "We have a lot of confidence in the products we're releasing and creating."
Third quarter sales rose 6 percent to $745 million. Excluding changes in deferred revenue, sales totaled $857 million and exceeded the $748.7 million average estimate of analysts.
This quarter, Activision forecasts profit of 47 cents a share excluding items. Sales, excluding changes in deferred revenue, will be $2.2 billion. Analysts project profit of 51 cents, the average of 23 estimates compiled by Bloomberg, and sales of $2.3 billion on that basis.
Like Electronic Arts Inc., which reported results on Nov. 2, Activision has been weathering an industry sales slump by relying more on digital and online sales. Consumers continue to play its "Call of Duty" and "World of Warcraft" franchises online, Kotick said.
The company plans to release "Call of Duty: Black Ops" on Nov. 9. Orders have exceeded levels for the earlier "'Call of Duty," the company said. It will follow that in December with another installment of "World of Warcraft.".
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