EAin late 1999 under which, in exchange for promotion by AOL, it agreed to provide the online giant content from its Pogo.com online gaming subsidiary. EA also agreed to pay AOL at least $81 million over the course of the five-year agreement and give it a cut of a projected spinoff of the online gaming business.
The AOL deal has been considered a contributing factor for ongoing losses by EA's online division, which includes casual games offered through Pogo.com and subscription games such as "." EA recently stopped reporting separate financial results for the online division and now folds the numbers in with its overall results.
EA announced during its first-quarter earnings statement Wednesday that it had revamped the deal with AOL to eliminate payments to the online giant. AOL instead will pay EA for access to premium games and other content.
EA executives declined to disclose precise financial conditions of the deal during a conference call with analysts but said it's a sign of the growing strength of EA's online assets.
"We have now gone from paying for access to being paid for our content," said Warren Jenson, chief financial officer.
AOL has increasingly looked to games as a way to boost subscription revenue, unveilinglast year.
EA reported net income of $18 million, or 12 cents a share, for its fiscal fourth quarter, which ended June 30. That compares with a profit of $7.4 million, or 5 cents a share, in the same period a year ago.
Revenue for the quarter was $353 million, up from $332 million a year ago.
Game publishers typically record the bulk of their sales and profit in the final quarter of the calendar year, when major new titles are released to compete for holiday sales.