EA profits fall despite higher sales

NEW YORK (AFP) – US video game maker Electronic Arts (EA) on Tuesday reported higher quarterly sales on strength in its FIFA brand and other franchises but profits were lower.

Electronic Arts cited FIFA Ultimate Team, as well as Apex Legends Battle Royale as especially hot titles.

Revenues for the quarter ending December 31 rose five per cent to USD1.7 billion.

But profits fell 39 per cent to USD211 million as the company spent more on research and development, marketing and administrative costs.

Last December, EA announced a USD1.2 billion acquisition of Britain-based Codemasters, which is known for its Formula 1 and DiRT racing video games.

EA projected full year sales of USD5.6 billion, below the USD6 billion expected by analysts.

Shares fell 4.6 per cent in after-hours trading.