Shares of Electronic Arts Tumble as Subscribers Leave 'Star Wars' Game
The maker of video games says profit surged 165 percent during the fiscal fourth quarter, but investors were selling the stock after the closing bell.
Shares of Electronic Arts sunk in after-hours trading on Monday after the company reported impressive financial results, but noted that the popuarity of its subscription, multiplayer game based on the Star Wars movie franchise has dwindled significantly.
The video game company said it ended its fiscal fourth quarter with 1.3 million active subscribers to Star Wars: The Old Republic, down 24 percent from the 1.7 million it had just three months prior.
Analysts had expected the company to report 1.6 million active subscribers.
Still, EA was touting a 76 percent year-over-year surge in "full-game downloads," and Star Wars: The Old Republic, which launched only six months ago, was getting much of the credit.
Net income for EA during the quarter jumped 165 percent to $400 million on revenue that was up 26 percent to $1.4 billion.
Shares of EA were off 8 percent in the after-hours session after having risen a penny to $15.13 during regular trading.