Company's stock rose 7%, peaking at $131 following recent financial results
Electronic Arts may be disappointed with the sales of Star Wars Battlefront II, but its investors remain optimistic about the company's fortunes.
Publisher's stock price reached an all-time high yesterday following the release of its most recent financial results. It rose by just under seven per cent (6.96 per cent to be exact) over the course of the day, which is equal to $8.26 per share.
The price peaked at $131, before settling at $126.96 per share.
The surge was triggered by EA's latest financial results, in which revenues for the third quarter came in at $1.16bn. The company forecast revenues of $5.1bn by the end of the financial year, with profits of $1.015bn.
It is also believed that the publisher's announcement that loot boxes and microtransactions will soon be reintroduced to Star Wars Battlefront II. While the game's sales fell short of expectations at just 7m copies, investors remain optimistic about the potential for long-term revenue from the game.
The monetisation model for Battlefront II was dropped just 24 hours before launch following consumer backlash over how a beta version of the loot box system hindered progression. Prior to this, EA had been confident it would form a long-running revenue stream.
Other causes for investor excitement may have included the announcement of a new Battlefield game for October, and the ongoing success of its annual sports franchises such as FIFA and Madden.
Electronic Arts posted a total loss of $186 for the quarter, although $176 of this was a tax expense centred around the recent introduction of the Tax Cuts and Jobs Act.