EA Looks To Continued Growth News
After experiencing a year of transition, EA looks forward to the year ahead...
By Jon WilcoxPosted: 09/05/2007
There's no doubt that EA is desperate to push original franchises over the course of the coming year, with the likes of SKATE and Army of Two set to form a key part of the publisher's ever-expanding raft of titles, joining the likes of Need for Speed, Madden, and The Sims. But after a twelve month period where the net income decreased dramatically from $236 million (£118.4 million) in fiscal year 2006 to $76 million (£38.1 million) - EA cites five studio acquisitions as one of the main causes of the drop - the publisher is preparing for a somewhat sizable bag of titles between now and the end of March next year.
But a drop in income caused by the acquisitions of Digital Illusions, Mythic Entertainment, and Headgate, isn't the only headache experienced by EA over the past year. The extended transition period to next titles, which culminated in the launch of PlayStation3 and Wii, also meant that the publisher's revenues in the fourth quarter suffered, dropping by 4% from $641 million (£321.6 million) in Q4 2006 to $613 million (£307.6 million). Things weren't as disappointing as they could have been however, with the sales performance of Command & Conquer 3: Tiberium Wars, Need for Speed Carbon, Def Jam: ICON, and The Sims 2: Seasons helping to lessen the blow.
During the course of the last twelve months, EA has recorded seven titles that broke through the three million sales mark including Madden NFL 07, FIFA 07, and two Need for Speed titles: Most Wanted and Carbon, increasing revenue for the fiscal year by 5% to over $3 billion (£1.51 billion). Forecasts for net revenues in the coming year are estimated to be between $3.1 billion (£1.56 billion) and £3.4 billion (£1.71 billion). Taking the publisher forward in the coming year is John Riccitiello, who re-joined EA earlier in the year. Speaking about his return he commented: "EA has a powerful set of franchises, strong brands and great talent...it is a great honor to rejoin this team and have the opportunity to build on its success." "We have a strong lineup for the year ahead," said Warren Jenson, Chief Financial and Administrative Officer. "We expect to launch more than fifteen games based on wholly owned properties - including Medal of Honor Airborne, Army of Two, Boogie, MySims, Battlefield Bad Company, SKATE and Need for Speed."










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