EA Beats Expectations Despite Widening Losses, Sims 3 Sells 3.7 Million Units
Electronic Arts' losses mounted in its first quarter, opening to $234 million, compared with $95 million for the same period last year. EA's fiscal first quarter ended June 30.
But the company still saw plenty of success during the period. EA reported net revenue of $644 million -- which although less than last year's $804 million quarter, still means EA did "better than expected," according to CEO John Riccitiello, chalking the performance up to "good execution."
Specifically, most analysts had predicted the company would lose 13 cents per share -- excluding restructuring and other items, the company ended up losing just two cents. And its adjusted revenue rose 34 percent to $816 million, also a better showing than the $729.5 million that analysts anticipated.
The launches of The Sims 3, EA Sports Active, and Fight Night Round 4 were the company's primary sales drivers, the company says, and Riccitiello notes EA's "very pleased" with sales of the first two.
The Sims 3 sold 3.7 million copies, the company revealed alongside the results, and EA says it was the top seller at retail for Europe and North America combined during the quarter. EA Sports Active has sold 1.8 million units, making it the company's most successful Wii title to date.
The company also says it's seeing a new high in its Wii marketshare: a record 21 percent in North America and 13 percent in Europe, thanks not only to EA Sports Active, but also to Tiger Woods PGA Tour 10, EA Sports Grand Slam Tennis and Rock Band 2.
EA still expects to make its estimate of $3.7 to $3.85 billion for the fiscal year, and did not adjust its guidance.