News Summary for Tuesday, July 31, 2012
Already today, Electronic Arts, Take-Two Interactive, and Sega Sammy have announced their quarterly financial results. Read on for specifics. EA even has a new CFO to go with its newly-announced stock repurchase plan. Also, a free-to-play version of Star Wars: The Old Republic is confirmed. Read on for more details...
- Electronic Arts announced its financial results for its fiscal first quarter ended June 30, 2012. For the quarter, EA reported net income of $201 million, compared to net income of $221 in the comparable quarter the previous year. With EA's stock at less than half where it stood last November, the company is convinced its equity is undervalued, and announced a $500 million stock buyback program. It could also mean simply that the company has extra cash or good debt financing, and doesn't have any better ideas for investment.
- Take Two Interactive announced its financial results for its first fiscal quarter ended June 30, 2012. For the quarter, the company reported a net loss of $111 million, compared to a net loss in the same quarter the previous year of $9 million. Without stellar releases in the quarter, catalog sales accounted for 26% of net revenue. Apparently, Spec Ops: The Line and Max Payne 3 didn't sell as well as Take-Two hoped.
- Sega Sammy Holdings announced its financial results for the quarter ended June 30, 2012. For the quarter, Sega Sammy reported net income of ¥2.5 billion (around $32 million) compared to a net loss of ¥2.2 billion in the same quarter the previous year. In part, the company blamed global financial uncertainty and electricity shortages in Japan for its weak quarter, as well as the need to focus on social games.
- Electronic Arts has hired Blake Jorgensen as its Executive Vice President and Chief Financial Officer. Jorgensen joins from Levi Strauss & Co., where he also served as CFO. Jorgensen will receive $650,000 annually, with a target bonus of 100% of his salary. he also gets a signing bonus of $350,000 and 200,000 shares of restricted stock that vest over four years.
- BioWare, part of Electronic Arts, will make its massively multiplayer online game Star Wars: The Old Republic free-to-play later this year. Some content will remain restricted to subscribers.