EA saw its loss widen to $391 million, or $1.21 per share, from a loss of $310 million, or 97 cents per share, a year earlier. This is the game publishers' eleventh quarterly loss in a row, to get in better shape EA said it will cut 1,500 jobs and close several facitilies. Excluding some items, EA posted a profit of 6 cents per share, while analyts polled by Bloomberg were expecting a profit of 10 cents per share.
The maker of “Madden NFL” reported its second-quarter loss widened to $391 million, or $1.21 a share a share, from a loss of $310 million, or 97 cents, a year earlier, according to a statement today. Excluding some items, Redwood City, California-based Electronic Arts posted a profit of 6 cents in the period ended Sept. 30, missing the 10-cent average estimate of 18 analysts surveyed by Bloomberg.
The actions will result in restructuring costs of as much as $150 million and savings of at least $100 million annually, the company said. Chief Executive Officer John Riccitiello has pushed to restore profitability by cutting jobs, closing development studios and focusing on fewer titles with greater revenue potential. Industry sales are down 13 percent this year, according to researcher NPD Group Inc.