Electronic Arts' adjusted profit tops estimates

By Scott Hillis

SAN FRANCISCO (Reuters) - Top video game publisher Electronic Arts Inc (ERTS.O: Quote, Profile, Research, Stock Buzz) on Thursday posted a quarterly loss but still topped estimates on strong sales of such titles as "FIFA 08" soccer and games for Nintendo's popular Wii console.

Shares of Electronic Arts rose as much as 6 percent to $62.40 in extended trading from a Nasdaq close of $58.74 as the company set a holiday-quarter sales forecast ahead of analyst expectations, raised its full-year revenue outlook, and said it had halted a slide in market share.

EA posted a net loss of $195 million, or 62 cents per share, for its second quarter ended September 30, compared with a profit of $22 million, or 7 cents a share, a year earlier.

Excluding special items, EA showed a profit of 27 cents per share, beating the average Wall Street target of 20 cents, according to Reuters Estimates.

Net revenue was $640 million, down 18 percent from $784 million. Including deferred revenue that will be recognized in future quarters, total revenue rose 19 percent to $936 million, topping the average Wall Street target of $896 million.

The company, whose other major franchises include "Madden NFL", "The Sims", "Need for Speed" and "Burnout", said it was benefiting from strong sales of games for Nintendo Co Ltd's (7974.OS: Quote, Profile, Research, Stock Buzz) Wii, a machine it had initially overlooked in favor of Sony Corp's (6758.T: Quote, Profile, Research, Stock Buzz)(SNE.N: Quote, Profile, Research, Stock Buzz) PlayStation 3.

"They've kind of crossed the divide here, and really started to get sales from next-gen consoles, especially the Wii. That's incredibly important," said Mike Hickey, an analyst with Janco Partners.

EA said, after Nintendo itself, it was the biggest publisher for the Wii, which has been the fastest-selling console this year due to its low price and emphasis on games that appeal to a broad audience.