EA Sales Up in Q2 due to Sports Titles, Lowers Holiday Sales Estimate - News

by William D'Angelo , posted on 31 October 2012 / 5,640 Views

Electronic Arts has announced its preliminary financial results for its second quarter, which ended September 30, 2012. The publisher saw revenue of $1.08 billion, a slight increase over the $1.03 billion in revenue during the same period a year ago. EA saw losses of $381 million, which is up from $340 million in losses last year.

"EA is performing well, once again beating street consensus in fiscal Q2," said Chief Executive Officer John Riccitiello. "We delivered yet another quarter of sharp digital growth, with digital revenue up 40% compared to the same period last year, reflecting our strength across multiple brands and channels."

"Record numbers of players have engaged in the online features and content downloads for FIFA 13, Madden NFL 13, and Battlefield," said EA President Frank Gibeau. "On the strength of our digital extensions, FIFA and Battlefield are the two biggest revenue events in our company's history. Both are well on their way to becoming billion dollar annual franchises."

EA announced that strong sales from its sports titles and the increase in the digital market helped the publisher meet its expectations for the quarter. FIFA 13 managed to sell 7.4 million units in just four weeks, while Madden NFL 13 sales increased by nine percent compared to Madden NFL 12. Digital sales increased by 40 percent compared to last year, to $324 million.

EA also released its outlook for its third quarter, which includes the holiday period. EA expects revenue to be between $1.25 billion and $1.35 billion, which is down slightly compared to what analysts are expecting, $1.39 billion. During the investor conference call, EA CEO John Riccitiello said that the lower than expected sales in Medal of Honor: Warfighter have hindered the companies expectations for the third quarter.

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Slimebeast (on 31 October 2012)

Wow, $381 million in losses on $1.08 billion in revenue. That's 35%. How can that be? What a badly run company!

sperrico87 (on 31 October 2012)

Lower than expected MoH: Warfare sales? Really, Riccitello? Like you guys at EA didn't know the game turned out like crap and released it at $60 anyway, with no early review copies in hopes of swindling people who don't know any better?

mike_intellivision (on 31 October 2012)

If I am reading this right, EA is losing $100M a month? Why is no one talking about it folding?

yum123 (on 31 October 2012)

GAAP vs non-GAAP

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SecondWar (on 31 October 2012)

I question this a swell, given it been an age since EA posted a profit. Since the recent news stories in the UK about multinationals hiding profits overseas, I've wondered if EA are doing that. Would explain how they keep going like this without anyone asking too many questions.

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platformmaster918 (on 31 October 2012)

with the MOH reviews and based on my 1 hour trial, I would lower expectations too. Only SUPER FPS addicts would buy this game...or people who just want to pay $60 for a beta code to BF4.