Losses rise, but revenues up at EA

Thanks to the success of killer franchises FIFA World Cup 2006, Battlefield 2, Need For Speed Most Wanted, The Sims 2 and Fight Night Round 3, net revenues reached $413m, up year-on-year from $365m. Gross profits were also up for the quarter, up 14 per cent to $245m.

Chairman and CEO Larry Probst also promised greater support for Nintendo formats and strong launch software for PS3, while hailing EA’s position as top publisher on Xbox 360.

But despite all this, net loss for the quarter stands at $81m, up from the previous year’s figure of $58m. Trailing twelve month operating cash flow was also down  to $589m compared with the previous year’s figure of $669m.

“We look forward to our slate of fall launches and the excitement surrounding next-generation software," said a cautious CFO Warren Jenson. “While the risks of this technology transition remain very real - our franchises are well-positioned for the opportunities ahead.”

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