EA Posts $58M Loss For Q1 As Sales Fall 16% To $365M

Baseball Title One Of EA’s Top Sellers In Q1

Electronic Arts posted a loss of $58M, or $0.19 per share, for Q1 ended June 30, compared to a gain of $24M, or $0.08 per share, in the year-ago period, according to Alex Pham of the L.A. TIMES. Sales for Q1 were $365M, down 16% from $432M a year earlier. However, the results beat analysts’ average expectations of a loss of $75.4M, or $0.24 per share, and sales of $326.8M (L.A. TIMES, 7/27). THESTREET.com’s Ronna Abramson noted EA “already had warned” that exclusive licensing deals with the NFL and ESPN “will kick in this year and drive up some of its costs in the near term” (THESTREET.com, 7/26). The HOLLYWOOD REPORTER’s Paul Bond notes “FIFA Street” and “MVP Baseball 2005” were among the titles that sold at least 500,000 copies during the quarter. Meanwhile, Bear Stearns analyst R. Glen Reid downgraded EA shares citing the “higher costs associated with licensing Hollywood and sports brands” (HOLLYWOOD REPORTER, 7/27). Shares of EA yesterday fell 4.9% to $59.00. As of presstime, shares were trading at $59.87, up 1.47% from yesterday’s close (THE DAILY).