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Forums - Gaming - EA posts $33 million Q3 net loss, but record revenues

Spire_VII on 31 January 2008

"Battlefield BC, Mercenaries 2 delayed; Euro RockBand to Q1 2009

Electronic Arts has posted a net loss of USD 33 million for the third quarter, compared with net income of USD 160 million during the same period of the prior year.

Even so, revenue rose 17 per cent to USD 1.5 billion compared with USD 1.28 billion last year. The company's net income of USD 290 million, or USD 0.90 per share, was in line with analyst expectations.

"This was a record revenue quarter for EA and the single biggest revenue quarter for any third party publisher in our industry," said CEO John Riccitiello.

Sales were driven by Need for Speed: Pro Street, FIFA 08, The Simpsons Game, Madden NFL 08, The Sims 2 Castaway, and NBA LIVE 08. The company reported that it had sold 1.5 million units of RockBand through the end of December.

EA also reported delays for Battlefield: Bad Company and Mercenaries 2: World in Flames. Their release dates have slipped from March, but the company expects to ship both titles in fiscal 2009.

EA has revised its Q4 guidance, expecting revenue in the range of USD 925 million - 1.05 billion, and earnings per share in the range of a loss of USD 0.03 to a gain of USD 0.02.

For the fiscal year, EA raised its guidance regarding revenue in the range of USD 3.462 - 3.587 billion, compared to earlier guidance of USD 3.35 billion - 3.65 billion.

Update: In a conference call to investors, CEO John Riccitiello indicated that RockBand would not be shipping in Europe until Q1 2009, which begins in April."

 

Source - http://www.gamesindustry.biz/content_page.php?aid=32644 



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kitler53 on 31 January 2008

record revenues and still no profit. interesting.



DSLover on 31 January 2008

EA no longer the powerhouse they once were.



 

 

NJ5 on 31 January 2008
kitler53 said:
record revenues and still no profit. interesting.

It's a common symptom in the current gen for gaming companies. Since those companies usually call the PS360 next-gen, let's call it next-gen-itis.

 



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supermario128 on 31 January 2008

Everyone will be coming to the Wii shortly.




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Smidlee on 31 January 2008
NJ5 said:
kitler53 said:
record revenues and still no profit. interesting.

It's a common symptom in the current gen for gaming companies. Since those companies usually call the PS360 next-gen, let's call it next-gen-itis.

 

"Electronic Arts has posted a net loss of USD 33 million for the third quarter, compared with net income of USD 160 million during the same period of the prior year."

 Yet the next gen was already here the year before with 160 million profits. 



Avinash_Tyagi on 01 February 2008

Its what you get when yoou don't make Wii your lead console



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

Lingyis on 01 February 2008

actually there's something about a ~$270 mln write-off-ish thing regarding something about online revenue. didn't spend too much time figuring out what it meant, though. maybe somebody can explain? there's still a non-GAAP profit, and probably it's a better indicator.



the Wii is an epidemic.

Just_Ben on 01 February 2008
Lingyis said:
actually there's something about a ~$270 mln write-off-ish thing regarding something about online revenue. didn't spend too much time figuring out what it meant, though. maybe somebody can explain? there's still a non-GAAP profit, and probably it's a better indicator.
Do you want to know what a write of basicly is, or where this write off is comming from?

 



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