CALABASAS HILLS, Calif.-Revenues from THQ Inc.’s wireless subsidiary more than tripled during the fiscal fourth quarter compared with last year, helping push the company to an 86-percent gain in overall profits during the period. Net income for the quarter was $10.1 million or 24 cents per diluted share.
Branded titles based on Nickelodeon, MotoGP and major sports leagues fueled sales for THQ Wireless, which saw revenues hit $25 million during the quarter ending March 31. Mobile games accounted for 4.6 percent of the parent company’s overall sales for the quarter and 3.3 percent of sales on the year. Wireless sales generated only 1.5 percent of the company’s revenues in the fourth quarter of 2004, and only 1.1 percent of revenues for last year.
THQ’s results beat Wall Street estimates, but the company predicted a larger-than-expected fiscal first-quarter loss, partly due to expected marketing costs for its mobile division.
“We also expect to benefit from extending our brands onto the new handheld platforms and doubling our wireless revenues as we roll out Star Wars and other compelling content,” said Brian Farrell, president and chief executive officer of THQ.
Shares of THQ were up 1 percent to $26.34 in mid-day trading on the Nasdaq.
