Electronic Arts beats analysts’ estimates

28 Oct 2011

Video game Battlefield 3 sold nearly 3m copies in its first two days, CFO Eric Brown says

Second-quarter profit for video-game publisher Electronic Arts is better than expected and forecast results for this quarter have beaten analysts’ estimates.

Sales in the current third quarter will amount to US$1.55bn to $1.65bn, the Redwood City, California-based company said. Analysts forecast US$1.55bn, the average of 18 estimates.

“EA had a strong quarter on the strength of FIFA 12, Madden NFL 12, and The Sims Social,” said John Riccitiello, CEO. “Battlefield 3 is off to a fantastic start on sales and quality, and we are preparing to launch two more blockbusters: Need for Speed The Run, and Star Wars: The Old Republic.”

CFO Eric Brown said the company is pleased with its results, adding that digital has grown 30pc year-over-year.

“We are raising our fiscal 2012 non-GAAP revenue guidance, our digital revenue guidance, and the midpoint of our EPS guidance,” said Brown.

Battlefield 3 sold nearly 3m copies in its first two days, said Brown.

In the second quarter ended 30 September, Electronic Arts posted profit, excluding some items, of US$17m, or 5 cents a share. Sales, excluding changes in deferred revenue, increased 17pc to US$1.03bn.

Electronic Arts focuses on adjusted revenue and earnings because a large portion of sales each quarter are deferred. The loss in Q2 increased to US$340m, or US$1.03 a share, from a loss of US$201m, or 61 cents a share, a year earlier, because some sports titles were released late in the period, said Brown.