Electronic Arts posts 57% drop in profit

Electronic Arts Inc. said Thursday that its fiscal second-quarter profit fell 57%, but the company’s shares jumped in extended trading after sales of sports titles boosted revenue.

Profit excluding some costs was 21 cents a share, beating the 1-cent estimate of BMO Capital Markets analyst Edward Williams.

Games made for Microsoft Corp.’s Xbox console generated $166 million in revenue, as customers flocked to sports titles such as “Madden NFL 07,” the top-selling computer game in the U.S.

Electronic Arts also is spending on new titles. The Redwood City, Calif., company said it planned to release eight of them this period for new consoles including Sony Corp.’s PlayStation 3 and Nintendo Co.’s Wii.

“This wasn’t a strong quarter; this was an Olympic quarter,” said Mike Hickey, an analyst at Janco Partners in Greenwood Village, Colo. “They’re realizing development costs today, and while they’re realizing that cost, they’re having monster performance.”

Net income in the quarter that ended Sept. 30 was $22 million, or 7 cents a share, down from $51 million, or 16 cents, a year earlier, Electronic Arts said. Sales increased 16% to $784 million.

The company said in August that it expected to break even on a per-share basis, excluding costs, on sales of $635 million to $685 million.

Shares of Electronic Arts closed up 24 cents at $53, and climbed $3.69 to $56.69 in extended trading.