REDWOOD CITY, Calif.—Shares of Electronic Arts Inc. surged after the publisher posted strong first-quarter sales of its Microsoft Corp. Xbox and mobile phone offerings.
The videogame giant reported mobile revenues of $33 million in its first quarter of 2007, the first full quarter to include revenues from Jamdat Mobile Inc., which EA acquired for $680 million late last year. Mobile sales accounted for 8 percent of the company’s total revenues, marking a fourfold increase from the final quarter of 2006.
EA continued to see solid mobile sales of its Tetris franchise—which many believe was the driving force behind the Jamdat acquisition—as well as FIFA World Cup, which was released with more than 80 carriers in 33 countries in advance of the actual soccer tournament. The company also said it expects its wireless business to grow by 25 to 30 percent for the rest of the year.
While EA’s overall quarterly loss widened from $58 million in the year-ago period to $81 million, investors warmed to the news of better-than-expected sales. Shares of EA gained $3.69, or 8 percent, to $50.21 per share after the news.
