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.