Electronic Arts spikes as Apex Legends eyes China expansion and a new mobile app

Shares of Electronic Arts, the creator of Fortnite competitor Apex Legends, surged as much as 9% on Wednesday after the company reported second-quarter results that blew past Wall Street expectations.

Apex Legends is expected to generate between $300 million and $400 million in net booking in 2020, and EA also disclosed that between 8 million and 10 million people play the game each week.

The video game producer is also planning to roll out Apex Legends in China and eventually worldwide with a mobile application.

Watch Electronic Arts trade live.

Wall Street is getting excited about Apex Legends.

Shares of Electronic Arts — the company behind the hit Fortnite competitor — rose 7% in early trading on Wednesday after the company reported second-quarter earnings that beat estimates. EA also revealed that Apex Legends is expected to generate between $300 million and $400 million in net bookings next year.

Here are the key numbers:

Net bookings: $743 million versus $719 million expected by analysts

Revenue: $1.21 billion, up from $1.14 billion last year

Earnings per share: $0.25 versus $.01 expected by analysts

The company saw net bookings from its live services games — which generate the bulk of EA's revenue — grow by 12% from the same period last year thanks to Apex Legends and Sims 4.

EA also said that Apex Legends has a consistent base of between 8 million and 10 million players per week, and the company is planning to expand the game into the growing esports industry.

“Apex Legends is going to be a major new addition to the global competitive gaming scene this year,” Chief Executive Officer Andrew Wilson said during an earnings call. “Interest from teams, broadcast partners and sponsors is strong. ”

The first official Apex Legends competition will take place this September with eight teams participating. EA is also planning to launch the game in China, and to release a mobile app worldwide.

In early July, EA released the second season of Apex Legends with the introduction of a new character, weapons, and in-game skins. The company said it plans to roll out more content throughout the summer, and Season 3 will begin next quarter.

Net revenue in 2020 is expected to be $5.37 billion, with profits of $2.8 billion.

EA is up roughly 19% year-to-date.