REDWOOD CITY, Calif.—Shares of Electronic Arts Inc. jumped after the game-making behemoth reported increased mobile sales and surprisingly good overall quarterly revenues.
The company rang up $35 million in mobile game sales, up slightly from the previous quarter’s $33 million. EA reported $784 million in overall quarterly revenue, up 16 percent from $675 million a year ago, and the company boosted its fiscal year outlook as it predicted holiday sales would beat analysts’ expectations.
A longtime leader in console and PC gaming, EA dove into the wireless waters last year with the $680 million acquisition of Jamdat Mobile Inc. EA has consistently ranked as the top mobile game-maker in the world since the deal closed in February, thanks largely to high-profile Jamdat titles including Tetris and Bejeweled.
“We had four of the top ten games in North America and the U.K.” during the quarter, Chief Financial Officer Warren Jenson said during an earnings call transcribed by SeekingAlpha.com. “Since acquiring Jamdat, eight of EA’s franchises are now available on mobile phones. As compared to Jamdat’s year-ago performance, revenue was up 75 percent.”
Shares of EA shot up $6.70, or more than 12 percent, to $59.70 per share following the announcement.
Meanwhile, European publisher Gameloft reported a nearly 50 percent increase in quarterly revenue over the year-ago period. Wireless games accounted for 98 percent of the company’s sales during the first nine months of the fiscal year, marking an increase of 52 percent over the same period in 2005, as Gameloft has consistently gained traction in North America.
