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

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.