EA Financials

Electronic Arts issues their promised Q1 2012 fiscal results, showing a smaller loss for the period than the company had projected based thanks to digital distribution and strong sales of Valve's Portal 2. Word is: "adjusted revenue fell 3 percent to $524 million, above the average analyst estimate of $511 million," and "For the three months ended June 30, profit rose to $221 million, or 66 cents per share. Excluding deferred revenue, the company reported a loss of $123 million, or 37 cents per share, compared with a loss of $78 million, or 24 cents a share, a year earlier." They also offer a specific figure for digital sales, saying this rose 11% to $209 million.
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10.
 
Re: EA Financials
Jul 27, 2011, 05:35
Dev
10.
Re: EA Financials Jul 27, 2011, 05:35
Jul 27, 2011, 05:35
Dev
 
Zavy wrote on Jul 27, 2011, 04:09:
So if TOR flops ala age of conan then EA will go bankrupt?
No way! Did you bother to check the financials?
http://investor.ea.com/financials.cfm
As of 2011 they have $1.5 BILLION in CASH. Yeah cash in the bank. So what if they spend $100+ million on TOR and lose EVERY PENNY by not selling a single copy. It won't bring them down. Oh and they have about $5 billion in assets and only $2 billion in liabilities.
9.
 
Re: EA Financials
Jul 27, 2011, 04:35
9.
Re: EA Financials Jul 27, 2011, 04:35
Jul 27, 2011, 04:35
 
Zavy wrote on Jul 27, 2011, 04:09:
So if TOR flops ala age of conan then EA will go bankrupt?

Read the article again. In one single quarter, EA posted $524 million dollars worth of revenue. Taking into account that different quarters sell more or less than others, that puts them somewhere between $1 billion and $2 billion in sales per year.

Just in profit alone, they posted $221 Million. Again, that's somewhere betweeen $500-800 million over the course of a year.

A couple hundred million loss on ToR if it sold zero copies would hurt them, but bankrupt? Not a chance. If there was even a chance that it could, they wouldn't have agreed to do it in the first place. You don't fuck around and take risks that could sink a multi-billion dollar company for the potential of profit. New companies take risks, not established cash cows.
8.
 
Re: EA Financials
Jul 27, 2011, 04:09
8.
Re: EA Financials Jul 27, 2011, 04:09
Jul 27, 2011, 04:09
 
So if TOR flops ala age of conan then EA will go bankrupt?
Avatar 55003
7.
 
Re: EA Financials
Jul 27, 2011, 01:44
Kxmode
 
7.
Re: EA Financials Jul 27, 2011, 01:44
Jul 27, 2011, 01:44
 Kxmode
 
Electronic Arts issues their promised Q1 2012 fiscal results, showing a smaller loss for the period than the company had projected based thanks to digital distribution and strong sales of Valve's Portal 2.

Wait. Back up. When did EA acquire Valve? Did I miss this? I thought Valve was independent?

entr0py writes: They published the boxed edition.

That explains it.
"Listen, Peter... with great horsepower comes... the sickest drifts..." - source
Avatar 18786
6.
 
Re: EA Financials
Jul 27, 2011, 00:41
6.
Re: EA Financials Jul 27, 2011, 00:41
Jul 27, 2011, 00:41
 
They are betting a TON of money that TOR will be a massive success.
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5.
 
Re: EA Financials
Jul 26, 2011, 23:04
5.
Re: EA Financials Jul 26, 2011, 23:04
Jul 26, 2011, 23:04
 
Dev wrote on Jul 26, 2011, 21:59:
The GAAP info shows that EA had $221 million profit instead of a loss, wonder why the huge difference.


They're posting a $221 million dollar profit, AND a $123 million dollar loss if you take into account Deferred Revenue.

Deferred Revenue could be anything from pre-sales of games to individual customers, or major sellers committing money early for some reason for products that are yet unfinished (retailer specific pre-sale bonuses come to mind).

Essentially money that has been given them but can be taken back partially or in full if say a game suffers large delays.

Such is my understanding anyways.

So they made a profit, but some of that is counting on future products to perform well.
4.
 
Re: Evening Consolidation
Jul 26, 2011, 22:13
4.
Re: Evening Consolidation Jul 26, 2011, 22:13
Jul 26, 2011, 22:13
 
slaka wrote on Jul 26, 2011, 22:07:
How does Portal 2 sales help EA?

They published the boxed edition.
Avatar 55038
3.
 
Re: Evening Consolidation
Jul 26, 2011, 22:07
3.
Re: Evening Consolidation Jul 26, 2011, 22:07
Jul 26, 2011, 22:07
 
How does Portal 2 sales help EA?
2.
 
Re: EA Financials
Jul 26, 2011, 21:59
Dev
2.
Re: EA Financials Jul 26, 2011, 21:59
Jul 26, 2011, 21:59
Dev
 
My heart bleeds for EA. Poor babies lost $123 million, almost twice as much as this quarter previous year.

From TFA:
Wedbush analyst Michael Pachter
WTF is a wedbush analyst?
Edit: nm, its the name of the company he works for.

Link to actual EA quarterly info:
http://investor.ea.com/results.cfm

The GAAP info shows that EA had $221 million profit instead of a loss, wonder why the huge difference.

Also the digital sales amount is almost half of total sales if you use non-GAAP numbers, and almost a quarter of total sales if you use GAAP numbers.
I'd been figuring that digital sales made up something like half of PC sales, and those figures are good indicators for that.

EA cites 2 million portal 2 sales, which are going to be boxed only sales (valve uses EA for publishing retail boxed versions), which is very interesting to me.
Just recently Gabe reported 3 million sales. So if EA handles all boxed retail sales, that means that portal 2 sold about 1 million digital steam PC sales.
Link


This comment was edited on Jul 27, 2011, 05:27.
1.
 
Re: EA Financials
Jul 26, 2011, 21:46
1.
Re: EA Financials Jul 26, 2011, 21:46
Jul 26, 2011, 21:46
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