Electronic Arts reports massive Q3 loss

The top game-maker Electronic Arts posts Q3 loss, lowers future expected earnings

ea-sports-game-titlesNorth America’s largest game-maker, Electronic Arts, announced today Q3 2010 financial earnings, posting a significant $82-million ($0.25 per share) loss. The loss compares to a $641-million loss in the same period last year.

The company missed Wall Street expectations by reporting total revenue for the quarter at $1.243-billion, compared to $1.654-billion in Q3 2009, a year ago.

 The fall in sales is largely attributed to fewer game title releases. The company was able to add subscribers; bringing its total gamers count to 1.9-million subscribers across all platforms the company develops games for.

Electronic Arts also updated its fiscal 2011 forecasts today. The company announced it expects earnings to be $0.50-$0.70 on a per share basis, with total revenue ranging between $3.65-$3.9-billion. The company said it expects operating costs to decrease by up to $100-million in fiscal 2011 over 2010.

The updated earnings estimates were also below Wall Street expectations.

The company said during Q3 2010, it was the top game publisher on the Sony PlayStation 3 platform, was the top PC game-publisher, and the top publisher for the Sony PSP platform. The company was the second top publisher on both the Xbox 360 and the Nintendo Wii platforms.

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Peggy holds a Bachelor Arts degree with honors in Economics from York University in Toronto, Canada. She is a Certified Management Accountant (CMA). She has also passed Level I of the Chartered Financial Analyst (CFA) Program. She is also a realtor. Write to [email protected]
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