Electronic Arts posts $454m FY loss

[Bodhesatva]

Played_Out said:
I think some people here just read the title and not the content of the original article. It actually shows that EA are doing really well, as they have increased YoY sales and acquired assets that are far in excess of their losses.

And you likely don't understand how M&A economics work, as purchased assets are factored in to yearly revenue streams. 

You pay 800 million for BioWare/Pandemic, for example, and you simultaneously increase your yearly revenue by increasing assets by 800 million (unless it is unanimously agreed that EA overpayed, which it was, by about 138 million dollars). The net result is on net income is 0 (or -138 million, in the case of Bioware/Pandemic).

Increasing revenue isn't all that significant unless there is profit growth paralleling it, which there isn't. Revenue has gone up, YoY, for 5 years straight -- and profits have gone down, YoY, each and every one of those years.