Electronic Arts’ Digital Sales Jump 39 Percent

Electronic Arts

Electronic Arts (NSDQ: ERTS), which has invested heavily in its digital business through a series of recent acquisitions, including the purchase of mobile publisher Chilingo and social games firm Playfish, says its digital revenues jumped 39 percent to $195 million during its third fiscal quarter. The company says that overall its digital sales are on track to reach $750 million for the year. That puts it second among the big video firms to Activision (NSDQ: ATVI) Blizzard, which brings in more than $1 billion a year in digital-related sales, primarily due to the success of its massively popular MMORPG World of Warcraft.

For the second quarter in a row, however, Electronic Arts’ overall mobile sales were flat. The company said mobile sales totaled $59 million during the quarter, up only slightly from $56 million during the same period a year ago.

The overall increase in digital-revenue was also not enough to offset a drop off in sales of the company’s traditional video game business. Overall, sales decreased to $1.053 billion from $1.243 billion during the third quarter of 2009. The company also reported a net loss of $322 million, up from the $82 million net loss it reported during the same period a year ago, although it attributed the red to some special adjustments.

The results were better than analysts had expected and that, coupled with a plan to buy back $600 million in stock, sent the company’s shares up nearly 9 percent in after-hours trading.

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