EA Reports First Quarter Financials
Net revenue for the first quarter was $365 million, down 16 percent as compared with $432 million for the prior year. Net loss for the quarter was $58 million as compared with net gain of $24 million for the same period the prior year. Twelve-month operating cash flow increased to $669 million as compared to $638 million for the same period a year ago.
Sales were driven by Medal of Honor: European Assault and Battlefield 2 -- each reaching platinum status (over one million copies sold) in the quarter. Other games, such as Batman Begins. FIFA Street, MVP Baseball 2005, and Need for Speed Underground 2 had continued strong sales, each selling over 500 thousand copies in the quarter.
"We are taking our portfolio to new and exciting platforms," said Warren Jenson, Chief Financial and Administrative Officer. "EA was number one on the PSP in June, and this quarter we expect to launch six games for mobile phones."
- Battlefield 2 reached platinum status in just two weeks.
- EA's agreement with John Madden was renewed for 12 years.
- The Company repurchased 6.3 million shares of its common stock during the quarter.
- Sony is EA's biggest cash cow.
- 32% of the company's total revenue for the quarter came from PlayStation 2 game sales (Xbox is 12%).
- 9% of the company's total revenue for the quarter came from PSP game sales (Nintendo DS is 3%).
- EA has 26 percent revenue share on the PSP in North America since launch.
- EA won seven Game Critics Awards: Best of E3 2005: Spore - Best of Show, Best Original Game, Best PC Game, Best Simulation Game; Madden NFL 2006 - Best Sports Game; Burnout Revenge - Best Racing Game; Battlefield 2 - Best On-Line Multiplayer Game.
7/26/2005 Frank Provo