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Forums - Sales Discussion - EA 2nd Quarter Fiscal Year 2009 Results

Dolla Dolla on 30 October 2008

http://biz.yahoo.com/bw/081030/20081030006325.html

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ:ERTS - News) today announced preliminary financial results for its fiscal second quarter ended September 30, 2008.

Net revenue for the second quarter was $894 million, up $254 million as compared with $640 million for the prior year. During the quarter, EA had a net deferral of $232 million of net revenue related to certain online enabled packaged goods games and digital content as compared with $296 million in the prior year.

Net loss for the quarter was $310 million as compared with net loss of $195 million for the prior year. Diluted loss per share was $0.97 as compared with diluted loss per share of $0.62 for the prior year.

Highlights

  • Madden NFL 09 sold 4.5 million copies and was the number one title across all platforms in the quarter based on NPD data.
  • SPORE is a hit selling nearly 2.0 million copies in just 3 weeks – over 40 million creatures have been uploaded into Sporepedia™. SPORE is the number one title on the PC in North America and number three title in Europe year-to-date.
  • Warhammer Online: Age of Reckoning, an MMO from EA’s Mythic Entertainment studio, sold 1.2 million copies in the quarter – with over 800 thousand current players.
  • The EA SPORTS core portfolio of annual simulation games takes a step up in quality – up 4 points year-over-year according to Metacritic's aggregated review score system on the Xbox 360® and PLAYSTATION®3 entertainment systems.
  • EA was awarded 5 of the 9 honors at the Leipzig Games Convention in Germany –Spore as best PC game; Mirror’s Edge™ as best Xbox 360 game; Skate It as best Wii™ game; Warhammer Online: Age of Reckoning as best online game; and Sonic Chronicles, a game developed by EA BioWare, won best Nintendo DS™ game.
  • EA Mobile is the world’s leading publisher of games for phones – with revenue of $47 million – up 24 percent year-over-year.
  • EA BioWare and LucasArts announced the development of Star Wars®: The Old Republic™, a story-driven massively multiplayer online PC game.
  • EA signs publishing agreements with Grasshopper Manufacture and Epic Games.

EA Announces Cost Reduction Plan

EA announced today a cost reduction plan, which will include the elimination of approximately 6% of the Company’s workforce. The Company estimates its cost reduction plan will result in annual pre-tax cost savings of approximately $50 million.

ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in millions, except per share data, SKU count and Headcount)
           

Q2
FY08

Q3
FY08

Q4
FY08

Q1
FY09

Q2
FY09

YOY %
Change
 
PLATFORM NET REVENUE MIX
 
Xbox 360 218 196 128 81 224 3%
PLAYSTATION 3 17 102 152 139 98 476%
PlayStation 2 73 301 166 79 54 (26%)
Wii 59 139 75 57 33 (44%)
Xbox 12 3 1 - 1 (92%)
Nintendo GameCube 3 1 - - - (100%)
Total Consoles 382 742 522 356 410 7%
 
PC 79 148 114 86

88

11%
 
Wireless 38 39 42 44 47 24%
Nintendo DS 47 122 36 21 43 (9%)
PSP 21 74 69 57 36 71%
Game Boy Advance 4 2 - - - (100%)
Total Mobility 110 237 147 122 126 15%

 

Platform Net Revenue Mix (as a % of Net Revenue)
 
Xbox 360 34% 13% 11% 10% 25%
PLAYSTATION 3 3% 7% 14% 17% 11%
PlayStation 2 11% 20% 15% 10% 6%
Wii 9% 9% 7% 7% 4%
Xbox 2% - - - -
Nintendo GameCube

1%

-

-

-

-
Total Consoles 60% 49% 47% 44% 46%
 
PC 12% 10% 10% 11%

10%

 
Wireless 6% 3% 4% 5% 5%
Nintendo DS 7% 8% 3% 3% 5%
PSP 3% 5% 6% 7% 4%
Game Boy Advance

1%

-

-

-

-
Total Mobility 17% 16% 13% 15% 14%

 

More at the link. I copied parts I thought would be of interest.



Threads of Interest:
The Movie Thread: http://www.vgchartz.com/forum/thread.php?id=6880
The Crow Eating Thread: http://www.vgchartz.com/forum/thread.php?start=0&id=3886
The Betting Thread: http://www.vgchartz.com/forum/thread.php?start=0&id=7104
Custom GIFs Thread: http://www.vgchartz.com/forum/thread.php?id=18963
The Greatest Game Ever Conceived On Any Platform
Tag: "I have tasted Obi-Wan's bitter tears"

Around the Network
woopah on 30 October 2008

so playstation 2 makes them more money than wii?



 nintendo fanboy, but the good kind

proud soldier of nintopia

 

heruamon on 30 October 2008

ROFLOL...GEE I wonder how many sites are going to run with the STAGGERING amount of $$$ EA is making on the 360 over the ps3...since they happily reported on EA last qtr and on Ubisoft recently....as I STRESS time and time again, it was ALOT of SPIN SPIN and more goddamn SPIN but sony fanboys reaching desparately for anything to show how they are over taking the 360's lead!

54% of EA console sales on the 360, up from 22%...roflol...numbers can be so easily spun!



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

Aj_habfan on 30 October 2008

How the fuck do you lose money Madden quarter.



Aj_habfan on 30 October 2008
RolStoppable said:
Sonic Chronicles being the best DS game at the Games Convention is simply disgusting.

But anyway, looks like Electronic Arts is selling more games on 360, PS3 and PSP than a year ago and their losses have increased. Hm...

Yea, those half assed PSP ports must be costing them a fortune...

Around the Network
Dolla Dolla on 30 October 2008
Aj_habfan said:
How the fuck do you lose money Madden quarter.

Beats me, dude. Ridiculous, eh? The telling statistic is their revenue on PS2 and PSP. It's greater than the Wii. THAT is a HUGE problem. The PSP already has software issues, and the PS2 only gets the biggest of EA releases. Bad news bears.

From the GAF:

Revenue Mix Q2 09 (In millions)


X360 224
PS3 98
PS2 54
Wii 33
PC 88
DS 43
PSP 36

Platform Net Revenue Mix (as a % of Net Revenue)

X360 25%
PS3 11%
PS2 6%
Wii 4%
PC 10%
DS 5%
PSP 4%


Threads of Interest:
The Movie Thread: http://www.vgchartz.com/forum/thread.php?id=6880
The Crow Eating Thread: http://www.vgchartz.com/forum/thread.php?start=0&id=3886
The Betting Thread: http://www.vgchartz.com/forum/thread.php?start=0&id=7104
Custom GIFs Thread: http://www.vgchartz.com/forum/thread.php?id=18963
The Greatest Game Ever Conceived On Any Platform
Tag: "I have tasted Obi-Wan's bitter tears"

darthdevidem01 on 30 October 2008

This is in the quarter before FIFA.....hence PS3 is low



All hail the KING, Andrespetmonkey

Aj_habfan on 30 October 2008

Dont see how though, dont think PS3 had any exclusives and multiplat sales havent become worse.



heruamon on 30 October 2008
Aj_habfan said:
How the fuck do you lose money Madden quarter.

The loss wasn't as bad as it looks, since they had alot of one-time restructing charges during the qtr to help consiladate the new acquisitions.  From Marketwatch:

"Excluding charges for items such as stock options and restructuring charges, the company said it would have lost $20 million, or 6 cents a share, for the recent period. Analysts were expecting a net loss of 7 cents a share for the period, according to consensus estimates from FactSet Research."

EA is going to post a nice qtr for the 3rd qtr, and once again, 360 will dominate sales for consoles.   

 



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

MANUELF on 30 October 2008

EA still losing money even with all those HD titles