EA is planning a $1 billion buyback following an excellent quarter

It looks like being one of the most hated companies in the United States isn’t enough to bring Electronics Arts down, as the video game publisher has exceeded expectations in terms of both profit and revenue. This success was due in large part to strong sales on the digital front, with digital sales now accounting for more than half of the company’s revenue. EA also announced that it’s buying back up to $1 billion of common stock. 

Video game publisher Electronic Arts Inc, known for titles such as “FIFA” and “Madden NFL”, posted better-than-expected quarterly profit and revenue, helped by strong digital sales and the release of “Battlefield Hardline”. The company’s shares rose 4.8 percent after the bell on Tuesday. EA also announced a new buyback program of up to $1 billion of common stock. Total revenue rose 5.5 percent to $1.19 billion for the fourth quarter ended March 31 from $1.12 billion a year earlier. The company’s digital business, which includes software distributed through direct downloads, accounted for about 52 percent of total revenue. EA also forecast full-year revenue of $4.25 billion. On an adjusted basis, the company forecast full-year revenue of $4.40 billion and a profit of $2.75 per share. Analysts on average were expecting profit of $2.64 per share and revenue of $4.48 billion, according to Thomson Reuters I/B/E/S. EA has benefited by offering its popular PC and online games on mobile devices, using a high-margin “freemium” model in which games are available for free but are monetized through advertising or by charging gamers for additional features.