Electronic Arts shares surge 9 per cent on strong earnings

MUMBAI: Electronic Arts beat earnings expectations in the most recent quarter, the first since Larry Probst took over as CEO in March, and an accomplishment that sent its stock nine per cent higher in after-hours trading on Tuesday.

The maker of video games said digital sales soared as revenue from packaged goods dropped during its fiscal first quarter.

Still, the company reported a net loss of $121 million in the latest quarter on adjusted revenue that rose by a per cent to $495 million. On a per-share basis, Electronic Arts lost 40 cents while analysts predicted it would lose 60 cents.

During the regular trading session on Tuesday, the stock fell by a per cent to $23.83. The stock surged more than $2 a share, though, after the closing bell.

Among the highlights was a record quarter for sales of The Simpsons: Tapped Out. Also, FIFA 13 digital net revenue surged 92 per cent to top $70 million in the quarter.

“EA had a solid quarter, driven by continued digital growth and disciplined cost management,” said Probst. “We are also executing on a clear set of goals for leadership on mobile, PC, current and next-generation consoles.”

Probst was a former CEO who took back the position in March after John Riccitiello stepped down, blaming himself when the company fell short of certain financial goals.