The road to XBOX ONE. Follow the journey

EA reports profits downturn

July 27th by Ben Parfitt

Electronic Arts has announced its latest financial results, revealing a drop in profits for the gaming powerhouse.

Net revenue for the fiscal first quarter ending June 30 2005 showed net revenue of $365 million, a 16 per cent drop compared to last year’s $432 million. Net loss for the quarter was $58 million, a world away from the net income of $24 million of the prior year.

Additionally, only two of the company’s titles achieved million-plus sales: Battlefield 2 and Medal of Honor: European Assault. Prior to the publication of the results EA’s share price closed at $2,90, a 3.4 per cent loss in value following a downgrade in investment recommendations from two of the US’s biggest financial institutions.

On a more positive note, EA noted that it had so far enjoyed a 26 per cent share of total PSP software sales in North America. Its agreement with American football figurehead John Madden was renewed for another 12 years, effectively tying the 69 year-old to the company for life. The company has also signed deals to with US mobile phone companies and expects to launch six phone games in the second quarter.

Advertisement

Tags: This article has no tags

Follow us on

  • RSS