EA Posts $58M Loss For Q1 As Sales Fall 16% To $365M
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Baseball Title One Of
EA’s Top Sellers In Q1
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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).
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