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Activision profits hit $381m in first quarter

Continued success of Modern Warfare and World of Warcraft helps company achieve better than expected results

Activision has recorded better than expected first quarter results, with profits at $381 million for the period ended March 31, 2010, up from $189 million in 2009.

Net revenues were $1.3 billion, with the publisher singling out continued strong sales of the Call of Duty and World of Warcraft franchises.

Call of Duty: Modern Warfare 2 was the number one third-party franchise and the number one best-selling third-party game of all time during the quarter, according to NPD in the US and Gfk Chart-Track in Europe.

"Our better-than-expected first quarter performance was driven by strong global consumer demand for Activision's Call of Duty and Blizzard Entertainment's World of Warcraft," commented Bobby Kotick, CEO of Activision. "Throughout the remainder of the year, we plan to release our strongest videogame lineup ever based on some of the industry's highest quality, profitable franchises.

"We expect to deliver record calendar year non-GAAP net earnings and expanded non-GAAP operating margins. In addition, we continue to strengthen our franchise portfolio and development resources for the future. Our high-quality brands, industry leading operational capabilities and solid balance sheet should enable us to take full advantage of the opportunities afforded by the expanding interactive entertainment market and allow us to deliver continued superior returns to our shareholders."

While the quarter has seen the company embroiled in a bitter legal row with ex-Infinity Ward members who have since formed a partnership with rival publisher Electronic Arts, it has also inked a 10-year deal with Halo creators Bungie, which it hopes will deliver further gains for shareholders in the long term.

The second quarter will see Activision release new racing series Blur, Shrek Forever After, Transformers: War for Cybertron and Singularity.

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.

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