Activision Beats on Core Games

NEW YORK (TheStreet) -- Activison(ATVI) shares edged up 2.7% to $13 after the company posted better than expected fourth-quarter earnings on strong sales of its core World of Warcraft and Call of Duty franchises.

The video game publisher grew adjusted earnings to 62 cents a share compared to 53 cents in the same quarter last year. Revenue fell 5% to $2.4 billion.

Analysts were looking for revenue of $2.2 billion and earnings of 56 cents per share.

"As we continue to strengthen our leadership position in interactive entertainment, our proven management team and talented employees delivered another extraordinary year of outperformance," CEO Bobby Kotick said in a press release. "With better than expected net revenues, record earnings, record operating margins, and having generated nearly $1 billion in operating cash flow, Activision Blizzard continues to set the industry success bar."

The company ended the year with 10.2 million subscribers for its World of Warcraft franchise, down from 10.3 million in the previous quarter. Some analysts were anticipating a larger drop off due to competition from rival Electronic Art's(ERTS) new Star Wars: The Old Republic title.

Activision also said that it will buy back up to $1 billion of its stock beginning in April. It will also increase its dividend by 9% to 18 cents per share.

--Written by Olivia Oran in New York.

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