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(Corrects first and second paragraphs to remove reference to Vivendi sale plans. Lowers reference to registration statement and corrects its description.)

(Bloomberg) — Activision Blizzard Inc. fell in extended trading after saying the strong U.S. dollar will hurt profit.
The shares fell as much as 9.5 percent to $19.75 after Santa Monica, California-based Activision forecast first-quarter profit of 5 cents a share, excluding items, and adjusted revenue of $640 million. Analysts estimate profit of 18 cents a share and sales of $775.7 million.
“Given the significant weakening of foreign currencies versus the U.S. dollar, the company’s 2015 international revenues and earnings are expected to be translated at much lower rates than in 2014,” Activision said in a statement on Thursday.
Activision advanced 1.4 percent to $21.82 at the close in New York before fourth-quarter results were announced. The company gets about 50 percent of its sales and even more of its profit outside the U.S., it said.
Fourth-quarter results beat analysts’ estimates. The company cited holiday sales of Call of Duty and Hearthstone. Profit totaled 94 cents a share, excluding some items. Analysts had projected 88 cents a share, the average of estimates compiled by Bloomberg. Adjusted sales of $2.2 billion beat forecasts of $2.1 billion.
Call of Duty: Advanced Warfare was the industry’s top selling title in 2014, Activision said, citing researcher NPD Group. The company also credited the console game Destiny, introduced in September. Chief Executive Officer Bobby Kotick said he plans to increase the number of major titles this year.

Stock Buyback

“We expect to expand our franchise portfolio to 10 blockbusters, up from five franchises at the beginning of 2014,” Kotick said in the statement.
Digital sales now make up 46 percent of revenue, as Activision pushes full-game downloads and add-on content for its most popular titles. In January, the company partnered with Tencent Holdings Ltd. to launch Call of Duty Online in China.
The board authorized the repurchase of up to $750 million of stock through February 2017, and plans to repay $250 million of debt in the first quarter.
Activision on Thursday renewed a shelf registration that allows Vivendi SA, which once owned a majority of the stock, to sell its remaining 41.5 million shares from time to time. The stake is valued at $856 million.

To contact the reporter on this story: Danielle Burger in New York at dburger7@bloomberg.net To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net Rob Golum