Electronic Arts Misses Estimates

The video game publisher misses analyst earnings and revenue estimates in the first quarter.
Publish date:

SAN FRANCISCO -- Video-games publisher

Electronic Arts


narrowed its loss for the first fiscal quarter of 2009 but missed analyst expectations.

The company reported a net loss of $95 million, or a loss of 30 cents a share in the quarter vs. a loss of $132 million, or 40 cents a share, a year ago.

Excluding charges, EA reported net loss of $135 million, or a loss of 42 cents a share, compared with a loss of $69 million, or a loss of 22 cents a share, a year ago.

Revenue for the quarter rose 41% to $609 million from $431 million a year ago.

Analysts polled by

Thomson Reuters

were expecting a loss of 34 cents a share on revenue of $639.8 million.

Sales were driven by the launches of

Battlefield: Bad Company




Burnout Paradise

and continued strength of its game

Rock Band

launched in partnership with Harmonix and


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MTV Networks, said EA. The

Battlefield Bad Company

game sold 1.6 million copies.

Including all charges, EA reported revenue of $804 million, up from $395 million the year before. During the quarter, EA had a net benefit of $231 million related to the recognition of deferred revenue for some online enabled games.

Shares of EA were down $1.54, or 3.2%, to $45.86 in recent extended trading.

For the fiscal year, EA said it expects revenue to range between $5 billion and $5.3 billion Earnings, excluding items, is expected to range between $1.30 a share and $1.70 a share. Analysts are expecting earnings of $1.59 a share on revenue of $5.15 billion.

EA's biggest rival

Activision Blizzard


will report its earnings Thursday though the company


its results earlier this month.

Smaller competitor



will report its quarterly results Wednesday.

EA is in the midst of a $2 billion hostile buyout of the maker of the

Grand Theft Auto


Take-Two Interactive

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