Electronic Arts sees profits rise through online game sales

Electronic Arts, maker of FIFA and other video games, posted second-quarter results that beat analysts' estimates on the strength of the company's popular sports titles.

Profit came to 53 cents a share, excluding some items, beating the 43-cent average of analysts’ estimates and sending the shares higher in late trading.

The company credited the performance of its popular FIFA soccer title, along with year-over-year growth in mobile play, according to a statement on Tuesday.

The company forecast third-quarter results that were below analysts’ estimates, but issued a full-year profit projection that was higher than Wall Street had expected.

"We remain impressed with the company's current game slate, and suspect the potential for meaningful upside relative to financial expectations," Mike Hickey, an analyst at Benchmark wrote in a research note.

The results underscored the strength of the company’s sports games and successful transition to digital play from packaged games purchased in stores.

Sales of FIFA, Madden NFL and Hockey Ultimate Team were up 15 per cent in the trailing 12 months, Electronic Arts said.

Online purchases by consumers accounted for 63 per cent of quarterly revenue. Adjusted revenue for the quarter to the end of September totalled $1.1 billion, beating the $1.09 billion average of analysts’ estimates.

The results included changes in deferred revenue that added $200 million to sales. Revenue was $1.15 billion on that basis a year earlier.

This quarter, the company projects profit of about $2.25 a share, excluding items, compared with analysts’ estimates of $2.35.

- Bloomberg