Earnings: THQ Profits Fall 75 Percent; Wireless Revs Drop 33 Percent In Q3


Video game publisher THQ (NSDQ: THQI) said Tuesday that profits fell in the quarter ending Dec. 31 because of titles that performed poorly, but that sales rose based on the popularity of WWE SmackDown vs. Raw 2008; Cars: Mater-National and MX vs. ATV Untamed. For its FYQ3, THQ reported revenues of $509.6 million, increasing from the year-ago period when it reported revenues of $475.7 million. Net income fell 75 percent to $15.5 million during the quarter from $62.1 million reported a year ago.

Affecting its bottom line: a $27-million charge to cancel two projects under development, shut down a development studio and a write down for games that the company had high hopes for but that did not sell well, including “Juiced” and “Stuntman,” according to the LA Times.

Meanwhile,THQ’s percentage of sales from wireless is shrinking. About 1 percent of sales or $5.1 million came from wireless properties in Q3, falling slightly from 1.6 percent, or $7.6 million in Q307. During the call, the company explained wireless revenues could increase in 2009 following the renewal and expansion of a licensing agreement with Lucas Films to develop mobile content for Star Wars and the upcoming Indiana Jones movie, according to a transcript on SeekingAlpha.com.

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