EA reports first quarter results
Electronic Arts today announced financial results for the fiscal first quarter ended June 30, 2005. Net revenue for the first quarter was $365 million, down 16 percent as compared with $432 million for the prior year. Net loss for the quarter was $58 million as compared with net income of $24 million for the prior year. Diluted loss per share was $0.19 as compared with diluted earnings per share of $0.08 for the prior year.
Sales were driven by Medal of Honor European Assault and Battlefield 2 – each selling over one million copies sold in the quarter – and to a lesser extent Batman. FIFA Street, MVP Baseball 2005 and Need for Speed Underground 2 had continued strong sales, each selling over 500,000 copies in the quarter.
“Our teams continue to set the standard for high quality development and marketing excellence in our industry,” said Larry Probst, Chairman and Chief Executive Officer. “Battlefield 2 is an exceptional creative achievement and a ground-breaking online experience.”
“We are taking our portfolio to new and exciting platforms,” said Warren Jenson, Chief Financial and Administrative Officer. “EA was number one on the PSP in June and this quarter we expect to launch six games for mobile phones.”
So soft game sales, spending on next-gen research and development, and console hardware shortages all contributed to EA’s loss. The world’s largest third party publisher also lowered its full-year outlook mostly due to the delay of The Godfather. EA is bound to recover though as we progress towards Christmas though, especially if it has a strong showing on the new Xbox 360.