EA profits slashed in half

Revenues were hit to a lesser extent - the full year figures stood at $2.951 billion, down six per cent compared with last year’s $3.129bn. Operating cash flow was also down year on year, falling from $634m to this year’s $596m.

The financial slump was blamed on the notoriously difficult trading conditions, EA’s huge $680m buyout of mobile games giant Jamdat and internal restructuring in Europe.

Looking forward, the publishing colossus piled the pressure on Sony’s ability to deliver its PS3 promises later this year, stating that: “EA’s expectations for the fiscal year ending March 31st 2007 are dependent on Sony’s ability to successfully launch PS3 in November 2006 and to provide sufficient supplies to satisfy consumer demand.”

Meanwhile, Midway has reported a Q1 loss of $22.6m – but figures were in line with expectations.

The $22.6m shortfall compared to a loss of $16m in the same period last year. Revenues were up 11 per cent, however, to $15.4m.

“We are pleased to report that we made progress during the first quarter toward our operating objectives for 2006,” said president and CEO David Zucker. “First quarter results were consistent with our guidance and Wall Street expectations, and during the quarter we continued to extend our presence overseas, grow new potential revenue streams such as dynamic in-game advertising and broaden our support for the new console platforms.”


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