Electronic Arts Reports Q3 Loss Bleeding Company of $308 Million

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News Posted: Wed, Jan 29 2014 12:01 PM
Video game publisher Electronic Arts (EA) posted a $308 million net loss during its fiscal third-quarter ended December 31, 2013. EA called it a "transitional quarter," referring to the fact that both Sony and Microsoft launched next-generation consoles in November. As a result, gamers tempered their spending on software titles for the Xbox 360 and PlayStation 3.

The good news for EA is that it seems to be on solid footing going forward. EA was the top publisher on both the PlayStation 4 and Xbox One, led by Battlefield 4, Madden NFL 25, FIFA 14, and Need for Speed Rivals. And for the month of December, FIFA 14 and BF4 were the two of the top three best-selling titles across all platforms in the Western World, the publisher said.

EA Headquarters

EA's third-quarter net revenue increased 27 percent year-over-year to $517 million, while trailing 12-month digital net revenue reached a record $1.86 billion. In addition, EA's trailing 12-month operating cash flow was $664 million, the highest it's been since 2005.

"In a transitional quarter, EA delivered EPS results above our guidance driven by strong sales of our next-generation console titles, continued growth in our digital games and services, and financial discipline across the business," said Chief Financial Officer Blake Jorgensen. "For our full year outlook, we are lowering our non-GAAP net revenue guidance to $3.91 billion due to the weakness in current generation software, but we are increasing our non-GAAP EPS guidance to $1.30 due to the improvement in our operating profits."

Looking at the whole picture, EA is a long ways from reaching for the panic button. Industry wide game sales have been trending upwards for the past several months, and both the PS4 and Xbox One have been selling well, according to the latest data by NPD Group.
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ha

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Good

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good they deserve it

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JayLim replied on Wed, Jan 29 2014 4:16 PM

Wasn't that their intention of what they were trying to achieve?

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Oh no, $308 million, they'll go broke!

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JMeloni replied on Wed, Jan 29 2014 5:27 PM

good

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Should probably read the article before you say "good". Even though it was a loss here, they still have a pretty good financial showing.

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NateKeen replied on Wed, Jan 29 2014 8:27 PM

Try releasing a flagship game that doesn't crash for the first month.

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How about making a NEW game for a change?

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I don't feel bad for them. You would think them winning the worst Customer Approval 2 years in a row and counting would give them a heads up that they are doing something wrong.

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realneil replied on Wed, Mar 19 2014 4:26 PM

Joseph Pianta:
You would think them winning the worst Customer Approval 2 years in a row and counting would give them a heads up that they are doing something wrong

 

Heading for a three-peat too. They sux big time.

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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