EA Loses $340m in the September 2011 Quarter - News
by VGChartz Staff , posted on 27 October 2011 / 6,937 Views
EA's financial results are in for the quarter. On a GAAP basis, the company had revenues of $715m for the quarter with a loss of $340m. On a non-GAAP basis, which includes fewer expenses, the company had revenue of $1.034b, with profit of $17m. EA had previously projected non-GAAP revenue of $925m-$975m for the quarter, and so the figure came in well above expectations. In the previous September quarter non-GAAP revenue reached $884m with a profit of $32m while the non-GAAP loss was $201m. By either measure EA's profitability dropped from the September 2010 quarter to September 2011 quarter despite increasing revenue.
EA expects GAAP revenue to reach $1.0-$1.1b in the December 2011 quarter and $1.55b to $1.65b on a non-GAAP basis. For the non-GAAP method of accounting which excludes some expenses, EA forecasts to earn 85-95 cents of profit per share, about $300m in profit give or take $17m on either side. Including the extra expenses, EA says it will lose about $210m - $257m in the next quarter.
For the year to March 2012, the company has raised its revenue forecast to $4.05-$4.2b from $3.825-$4.025b (both on a GAAP and non-GAAP basis). EA now expects to profit for the year, rather than break even, with it's new GAAP profit range at $49m - $119m, up from the previous range which went from a $21m loss to $69m in profit for the year.
For the quarter, EA listed the following highlights:
- The Sims Social on Facebook has 8m daily active users and 40m monthly active users.
- EA shipped almost 8m copies of Fifa, and over 3m copies of Madden in the September quarter. Including digital downloads, Fifa is over 16m to date. Battlefield: Bad Company 2 is at about 11m lifetime. Fifa, Madden, and NHL 12 all performed ahead of projections according to EA.
- 6m people are using the Origin service to date.
- EA had 25% share in Western markets in the September 2011 quarter. In Western markets, over January to September 2011, EA had a 19% software share compared to 17% in the same period of 2010.
- EA digital revenue grew to $234m from $161m in the previous September quarter.
- Console digital revenue nearly doubled to $278m over the past 12 months compared to the 12 months to September 2010.
- EA made $337m in revenue in North America, $328m in revenue from Europe and $50m in revenue from Asia in the September 2011 quarter. The North America figure increased 3%, Europe increased 25%, and Asia increased 19%.
EA also provided a platform breakdown of revenue.
- X360, PS3, and Wii software revenue each grew from the September 2010 to September 2011 quarter, increasing $172m-$213m, $152m-$169m, and $25m-$45m respectively for the three consoles.
- PS2 revenue shrank to $15m from $29m over the same period.
- Mobile grew from $49m-$55, with PSP flat at $17m each September quarter, and DS shrinking from $8m to $7m. PC revenue also grew from $157m to $178m with 'Other' platforms growing from $22m to $26m.
- Revenue figures for 3DS were not specifically provided, although they were likely included in 'Other'.
Look for more earnings info in the days to come.
Contact VGChartz at jmazel@vgchartz.com
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FIFA 11 = 16M ! That is to be the biggest sales ever for a sports game ! FIFA 12 started even better... I don't like football but I must say that's fun with friends... I'm wondering why Americans are so uninterested by a sports and a game that is like a religion in Europe... In France FIFA sells the same as Call of, GTA and GT, which I call the big 4 on PS3.
"Battlefield: Bad Company 2 is at about 11m lifetime." : VGC has 6.15M 360+PS3+PC : you're lacking a lot of data !
vg does not track any digital sales so they could be digital versions bought off of steam
Yeah they are losing money every year. Whats the trick of them still staying around? EA makes a lot of games, would be sad to lose them
Wow speaks to the power of PS2, still bringing in $15 million. I wonder whose playing it and what titles they're buying...
Just as a comment, the big difference between GAAP and non GAAP for companies like EA or Activision isn't extra expenses but defered revenue. As a result of defering massive revenue from the Holydays to Q1 of the following year, on GAAP basis EA and Activision always loose money in Q4 and make a tonn in Q1. Typically what happens is both companies budget the expenses of BF3 and MW3 in Q4 but only account for the revenue in Q1 2012...
Ea's losing money, Sony's losing money, Capcoms probably gonna end the year under profits, Nintendo's losing money, damn.... I hate this economy
I wonder if EA are ever going to be making profits anytime soon, Now they have a super seller in FIFA world wide, not like last years when non of there titles topped 10M world wide, But why are they still losing?
How the F do they lose money with those Fifa sales? R&D?
lol so i get thumbs down if i post the fiscal year results? yeah makes sense...
just searched fiscal years im millions: 2010 -677, 2009 -1,088, 08 -454. i wonder how 2011 will look
i dont get it these guys are either geniuses at hiding money or run by complete fukwits they sell rediculous amounts of games and post these quarter billion loses everytime. and some one please explain the difference between gaap and non gaap is that an american thing.
and fifa 12 at 16 million already omg thats alot bigger than cod.
I guess this is just a trick to save money and pay less taxes.
Sold Zillions of FIFA copy"s and still losing money -lol
who knows how much they have to pay for licencing games like madden and fifa. all the leagues aren't cheap i think, football (soccer) is an expensive market.
who knows how much they have to pay for licencing games like madden and fifa. all the leagues aren't cheap i think, football (soccer) is an expensive market.
did they ever win money? it seems like they lost like 1 billion every year over the last ten yearsAdd your comment...
i hate EA, i hope this company die fast...
