EA Reveals Q2 Losses News
Jon Wilcox
02/11/2007
Drops in revenue, operating income, and a net loss bring an end to a busy quarter for Electronic Arts...
Electronic Arts has today confirmed their financial results for the second quarter of fiscal year 2008, which ended on September 30th. A busy three-month period for the developer/publisher giant, which included the shock acquisition of Bioware and Pandemic for £400 million, as well as multi-platinum sales of both Madden NFL and FIFA, has seen the company take a 12% and 13% stake in Wii software sales making it the biggest third-party publisher for the platform.
Looking at the balance books for the period throws a slightly negative spin on EA's performance however. The publisher has disclosed an 18% drop in net revenues for the second quarter from $784 million (£376.3 million) to $640 million (£307.2 million), together with a significant decrease of gross profit year-on-year by 45% to $245 million (£117.6 million). A slight net income of $22 million (£10.6 million) has also been overturned, with a net loss of $195 million (£93.6 million) recorded during the period.
In addition, EA has announced the closure of its offices at Chertsey, the final part of the year long move to Guildford, together with 350 redundancies worldwide.