Electronic Arts mobile revenue drops to $79M in Q1

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By Kathleen De Vere Comments

Electronic Arts’ mobile net revenues for Q1 2013 were $79 million dollars, a gain of 21 percent year-over-year. It is the first time since Q2 2012 that the company hadn’t seen its mobile revenues increase on a quarterly basis.

Although down quarter-over-quarter, EA’s mobile revenues accounted for a larger portion of the company’s overall revenues in Q1 2013 than they did in Q4 2012. Mobile revenues accounted for 21.3 percent of the company’s total digital revenues of $324 million, up from the 20.2 percent of digital revenues they accounted for in Q4. Q1 2013 mobile revenues were 7.2 percent of the company’s overall earnings of $955 million, up from 6 percent in Q4 2012.

On a non-GAAP (generally accepted accounting principles) basis, EA’s smartphone and tablet revenues grew 86 percent year-over-year to $52 million. As predicted, the company’s feature phone revenues fell, dropping 13 percent year-over-year to $27 million. On a non-GAAP basis, mobile phone and tablet earnings increased by 37 percent year-over-year. Overall smartphone and tablet revenues were $201 million on a trailing 12 month basis.

EA also highlighted the growth of its free-to-play business, which includes social games, FIFA Online, EA’s mobile and tablet titles and well as offerings on its Play4Free.com website. Overall the company is now seeing $6.3 million in weekly free-to-play revenue, up 152 percent year-over-year, from the $2.5 million a week the company was earning in Q1 2012.

Once again, EA PopCap’s bejeweled Blitz was the company’s top performing mobile game. The company’s Origin services also did well on mobile, with 9 million registered mobile users.

EA’s GAAP net income for Q1 2013 was $201 million, down 9.9 percent year-over-year from Q1 2012’s $221 million. The company is predicting GAAP net revenues of $650 to $700 million for Q2 2013, and digital revenues somewhere between $1.5 and $1.55 billion for the 2013 fiscal year.

The company’s shares were up slightly on the news, rising 1.36 percent in after-hours trading to $11.17 each.