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EA stock jumps 16% on financial results

But THQ sees a 10% fall in after hours trading following underwhelming figures

Investors have so far reacted in wildly different ways to the financial results of Electronic Arts and THQ, with the former's stock jumping by 15.8 per cent across the day yesterday to settle at $18.09, while the latter's had dropped by 9.7% to $5.79 in after-hours trading (at the time of writing).

EA yesterday announced that losses had widened to $322 million, with sales down almost $200 million on the previous year's quarter. But investors appear to be pleased by the company's decision to repurchase $600 million in company stock, while CEO John Riccitiello's comments on its huge Star Wars MMO bet may also have stoked confidence.

In a call to investors he claimed that 500,000 subscribers for the game - which has cost an estimated $100 million to make - would be "substantially profitable, but it's not the sort of thing we would write home about," while "anything north of one million subscribers is a very profitable business."

THQ meanwhile announced a $15 million loss - including almost $10 million incurred with the cancellation of two online games - and while CEO Brian Farrell remains optimistic about fiscal 2012, investors seemed less confident.

"THQ is poised for significant net sales and earnings growth in fiscal 2012 as a result of aggressive investment in owned intellectual properties and major franchises, a lean cost structure, and growing digital revenues," he said in a statement.

The publisher is currently looking ahead to the release next month of one of its most ambitious titles to-date, Homefront, while fiscal 2012 will include the releases of new games in the Red Faction, MX vs ATV, Saints Row and Warhammer 40,000 franchises.

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