Electronic Arts Reports Third Quarter Loss

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Electronic Arts reported its financial results for its fiscal third quarter ended December 31, 2007.
During the quarter, EA reported a net loss of $33 million, compared to net income in the same quarter the previous year of $160 million.

One of the factors impacting the drop in revenues is a change in the way in which EA recognizes income. Instead of recognizing revenues from online-capable games upfront, the revenue is booked over the course of the estimated service period, meaning that as of the end of the period, EA has $231 million of revenues that have been deferred to future periods.

EA also noted that it has delayed both Battlefield: Bad Company and Mercenaries 2: World in Flames to fiscal 2009 (beginning on April 1, 2008)

Half of EA's revenue comes from North American sales, while 45% come from Europe and 5% come from Asia. By platform, 31% of revenues come from PlayStation 2 games, 17% come from PC game sales and 13% come from Xbox 360 sales (with other platforms making up the remainder of sales).

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This page contains a single entry by Editor published on January 31, 2008 6:53 PM.

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