Earnings: Electronic Arts: Q2 Mobile Revs Up 24 Percent But Overall Loss Widens; Laying Off 540
Electronic Arts (NSDQ: ERTS) said wireless revenues jumped 24 percent to $47 million in its fiscal second quarter from $38 million in the year-ago period. However, the company’s wireless-related business still only comprises about 5 percent of overall revenues, which is slightly less than last year, when the mobile division brought in 6 percent of all revenues. Nonetheless, the company is still claiming the No. 1 spot for mobile game publishing. EA Mobile said it is releasing 12 mobile games in the third quarter, including FIFA, Need for Speed and Trivial Pursuit. During the earnings call (via SeekingAlpha transcript), John Pleasants, EA’s COO and president of global publishing, said wireless-related revenues are up 25 percent in the last six months: “This business is on track to generate over $185 million in revenue this year, consistent with our previous guidance.”
As for the overall fiscal Q2 numbers, EA’s net loss widened to $310 million from last year’s $195 million net loss. Revenues during the quarter jumped 39.7 percent to $894 million from $640 million year-over-year. To combat the losses, the company said it plans to layoff about 6 percent or 540 employees. We’re waiting to hear back on whether any of those jobs will come from their mobile division. In the meantime, David Kaplan has all the other details on our sister site paidContent.
Release (PDF) | Webcast | Transcript
Posted In: Money, Earnings, Companies, Electronic Arts, EAMobile
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