EA reports Q1 2008 gross profit of $229 million
EA announced financial results from Q1 2008 showing gross profit of USD 229 million, down seven per cent year-over-year
EA has announced financial results from Q1 2008 showing a gross profit of USD 229 million, down seven per cent year-over-year.
Net revenue for the quarter was USD 395 million, down four percent compared to the prior year sales of USD 413 million. Net loss for the quarter was USD 132 million, compared with a net loss of USD 81 million for the prior year.
Sales were driven by Harry Potter and the Order of the Phoenix, which sold two million copies in one week, as well as Command and Conquer 3, The Sims 2 Pets, Need for Speed: Carbon, and The Sims 2.
"In the last three months we announced the reorganization of our business into four labels and welcomed Kathy Vrabeck and Peter Moore to EA," said John Riccitiello, EA's CEO. "I'm pleased that our team, structure and strategy are coming together quickly."
In a conference call with investors, however, Riccitiello admitted "We are not pleased with year-to-date market share. While anticipated, this is not acceptable." He expressed confidence that the company would improve upon its current market share, pointing to a strong holiday lineup.
Along with the EA Sports lineup, the company listed Need for Speed Pro Street, MySims, Medal of Honor: Airborne, Army of Two, The Simpsons, Warhammer Online, Smarty Pants, Crysis, SKATE, Boogie, Playground, and Rock Band among its upcoming titles.
EA will release Crysis in November, rather than September, and plans to move the release date of FIFA from the last week of Q2 to the first week of Q3.
Net revenue for Q2 2008 is expected to be between USD 465 and 570 million. Net revenue for fiscal year 2008 is expected to be between USD 3.2 and 3.5 billion, up USD 100 million from EA's previous guidance.