EA posts yearly loss of $1.08 billion

Posted on Wednesday, May 06 2009 @ 14:50 CEST by Thomas De Maesschalck
Game publisher EA has recorded a net loss of $1.08 billion on a revenue of $4.2 billion over the fiscal year ending March 31, 2009. Revenue was up 15 percent from last year's $3.6 billion while the company's loss more than doubled.

However, the fourth quarter results were better than expected as the company published a loss of only $42 million. EA CEO John Riccitiello claims the company's strong cost actions in Q4 FY09 and investments in digital service business will result in a stronger fiscal 2010.
Meanwhile, the publisher's fourth quarter results rang in to the tune of $42 million in net loss--less than expected by analysts. According to EA, sales in that quarter were largely driven by Skate 2, Rock Band 2, The Lord of the Rings: Conquest, Left 4 Dead and Need for Speed Undercover.

Following third quarter losses of over $600 million, EA quickly moved to cut back its operation, presenting plans in February to close 12 facilities and cut 11% of its workforce.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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