Videogame publisher Electronic Arts’ prediction fourth-quarter revenue above analysts’ estimates as it expects to gain from the send of its mixed martial arts title, “UFC 3,” sending its shares up 6 percent in lengthened trading.
The third installment of the successful franchise is set to release later this week and is reckon oned to make up for the underwhelming response to the “Star Wars” game, which was organized during the holiday season.
EA forecast revenue of $1.23 billion for the fashionable quarter, topping Wall Street’s expectations of $1.18 billion.
“Scads thought guidance would be lowered, and guidance was raised. That purposes nothing is wrong, and people were overly focused on ‘Star Wars’,” Wedbush Safe keepings analyst Michael Pachter said.
The gaming community was outraged over with the company’s pricing of in-game purchases for the “Star Wars Battlefront II” event, with many complaining that the option gave an unfair upper hand to the well-heeled.
EA has temporarily disabled micro-transactions following the backlash, which may from dented the popularity of the title.
“We sold fewer units than we thinking in the quarter. We thought we would sell roughly eight million portions, we sold just a little under one million units less than that,” Chief Pecuniary Officer Blake Jorgensen told Reuters.
The company had indicated in the lifestyle that it expected the game to replicate the success of the previous version that trade ined over 14 million units in the fiscal year 2016.
“We will persevere in to sell ‘Star Wars’ just at a slower pace than we at first thought,” Jorgensen said.
On an adjusted basis, revenue for the third domicile ended Dec. 31 was $1.97 billion. Analysts on average had expected $2.01 billion, according to Thomson Reuters I/B/E/S.
Net disadvantage was $186 million, or 60 cents per share, in the quarter, compared with a annihilation of $1 million, or break-even per share, a year earlier. The latest spot included an income tax related charge of $176 million.
Sales at EA’s high-margin digital profession rose nearly 14 percent to $780 million as more gamers take their titles online instead of purchasing physical copies from retail stores.