EA Reveals Q3 2010 Financial Results
Electronic Arts reported a loss of about $201 million ($0.61 per share) for this quarter ending September 30. But this loss is smaller as compared to previous year’s same quarter, which was of about $391 million ($1.21 per share), the revenues of the company fell by 20 percent.
But thanks to a smaller no of releases that were launched by the company this quarter that saved the day. The company launched seven major titles this quarter whereas nine in the previous year quarter.
EA posted a small profit of $32 million ($ 0.10 per share) on $884 million of revenue by excluding the one-times charges and restructuring costs, acquisition expenses, and stock-related compensation.
This beats the average estimation of a Thomson Reuters survey of analysts, in that he expected revenue of $815 million and loss of ($0.10 per share).
According to the publisher, six of EA games were in the top twenty selling games in North America and Europe, and those were:
EA executives said that FIFA brand game sales are increased by 20 percent all over, whereas franchise’s sales are at the top by sales of over 100 million units till now. Moreover, Battlefield: Bad Company 2 sales are nearly of about 6 million units.
It was also revealed that the reboot of Medal of Honor series sold about 2 million copies in the first two weeks of release.
Now talking about the new titles, the analysts were told by the executives on a conference call that EA MMA is “off to a slow start” but the console versions of the Sims 3 were “tracking well.”
EA’s upcoming title, NBA Elite 11 has been canceled as it was rumored that the development of future NBA games will be done at EA Tiburon in Florida.
In “High definition console” market i.e. the Xbox 360 and PlayStation 3 markets, EA claimed to be the top publisher. It was also reported that the market share increased by 2 points, reaching to 25 percent.
Moreover it is the top PC publisher with a 27 percent share. EA CEO John Riccitiello said that “sales of high-definition packaged goods and digital goods are increasing, but revenue from the Wii and handheld games is falling.”
EA believes that from its full fiscal year the revenue will be from $940 million to $1.07 billion considering a figure of $ 180 million taken into of restructuring cost because of licensing agreements and developer contracts, it also included ongoing expenses for the development of MMO Star Wars: The Old Republic but it will not be launched in the fiscal year ending March 31, 2011.