Electronic Arts posts higher net loss despite bigger revenues

Electronic Arts has published its latest quarterly financial report, revealing an increase in both revenues and net loss and confirming the publishing giant's growing support for the Nintendo Wii.

Overall revenues rose from 285 million Euro during the same period last year to 322 million Euro, an increase of 13 per cent and a figure which exceeds the publisher's forecast. Net loss, however, was up from 45 million Euro to 63 million Euro.

EA's top-selling titles included 2006 FIFA World Cup, Need for Speed Most Wanted, Battlefield 2: Modern Combat and Fight Night Round 3. The publisher also highlighted the success of The Sims 2, which has now spent more than 90 weeks in the UK chart.

In a conference call, executives confirmed EA's support for Nintendo, stating: "We have ramped up [game] production for the Wii and DS Lite." As communications VP Jeff Brown toldGI.biz recently, EA was impressed by Nintendo's showing at E3 and believes the Wii could well become the second system in gamers' homes.

EA plans to release two Wii games at launch - new instalments in the Need for Speed and Madden series - with five titles out by the end of March. According to EA, Nintendo has suggested that Wii games will be priced under US$50 (around 40 Euro).

CEO Larry Probst also confirmed the company's ongoing commitment to the Xbox 360, and support for the PlayStation 3. However, EA execs expressed doubts over whether Sony will be able to meet its target of manufacturing 6 million units by the end of the financial year. EA plans to release four or five PS3 games by January, including Madden, Need for Speed and Tiger Woods.

Turning to the issue of the new, scaled-down E3, EA echoed comments made yesterday to GI.biz, stating that the move "makes good business sense" and "will save the company multiple millions of dollars."

The company has forecast net revenues of between 495 million Euro and 535 million Euro, with revenues for the year standing at between 2.2 billion and 2.35 billion Euro.

CFO Warren Jenson stated: "We look forward to our slate of fall launches and the excitement surrounding next-generation software. While the risks of this technology transition remain very real, our franchises are well-positioned for the opportunities ahead."