EA Revenues Down But It's Calling Good News
Fewer game releases were offset by booming digital revenue.
Electronic Arts has reported net revenue of $539 million for March to June 2010 compared to $816 million in the same period last year. It had predicted it would see revenues of between $460 million to $500 million; so it's calling 'Good News' on this one.
EA's year-on-year net revenue fell 34% - down from $816 million in Q1 2009. The publisher posted an operating income of $98 million (compared to a $245 million loss at the same time last year) but endured a net loss of $78 million (compared to just $6 million in Q1 2009). So a bit of a mixed bag overall.
The company accounted for the drop in revenue in its earlier predictions due to its refreshed ethos of "leveraging fewer, bigger franchises". This has meant that, compared to Q1 2009's release lineup of ten games, EA has only released six this year. The lack of games was "somewhat offset by strong digital revenue growth."
However, there's good news for the company because its social gaming venture takes flight, with 52 million monthly active users reported and 67 million core registered users.
FIFA Online 2 did well for the Korean online gaming market, experiencing five million registered players and three million unique players during July alone. Madden NFL 11 will continue the pace by introducing a feature called GameFlow, which offers "simpler play choices and a quicker path to the action," to make the game more accessible to casual players.
Its mobile revenue for the quarter was $52 million over 2009's $50 million, which gave EA cause to mention its position as the #1 publisher across all Apple App Store platforms. When the iPhone 4 launched, nine of the top ten games available were from EA.
The publisher has predicted an expected Q2 net revenue between $775 million to $825 million. It is on track with expectations for the entire fiscal year, of which net revenue is set at $3.65 to $3.90 billion.
EA's year-on-year net revenue fell 34% - down from $816 million in Q1 2009. The publisher posted an operating income of $98 million (compared to a $245 million loss at the same time last year) but endured a net loss of $78 million (compared to just $6 million in Q1 2009). So a bit of a mixed bag overall.
The company accounted for the drop in revenue in its earlier predictions due to its refreshed ethos of "leveraging fewer, bigger franchises". This has meant that, compared to Q1 2009's release lineup of ten games, EA has only released six this year. The lack of games was "somewhat offset by strong digital revenue growth."
However, there's good news for the company because its social gaming venture takes flight, with 52 million monthly active users reported and 67 million core registered users.
FIFA Online 2 did well for the Korean online gaming market, experiencing five million registered players and three million unique players during July alone. Madden NFL 11 will continue the pace by introducing a feature called GameFlow, which offers "simpler play choices and a quicker path to the action," to make the game more accessible to casual players.
Its mobile revenue for the quarter was $52 million over 2009's $50 million, which gave EA cause to mention its position as the #1 publisher across all Apple App Store platforms. When the iPhone 4 launched, nine of the top ten games available were from EA.
The publisher has predicted an expected Q2 net revenue between $775 million to $825 million. It is on track with expectations for the entire fiscal year, of which net revenue is set at $3.65 to $3.90 billion.
Companies:
Electronic Arts
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