This afternoon Electronic Arts held its quarterly conference call to discuss sales, revenue and all things financial. Despite posting some fiscal losses, EA CEO John Riccitiello had plenty of impressive figures to share showing the company’s strengths.
The second quarter of EA’s 2013 fiscal year ended on September 30, with the company boasting quarterly revenue of $711 million dollars in net revenue, down $4 million from the same period last year. What’s interesting though is the sharp increase in digital sales — $324 million over $234 million last year, for an increase of $90 million dollars — nearly matching the decrease in packaged goods and other net revenue — $365 million over $450 million last year, for a decrease of $85 million.
The overall result is a $381 million net loss with a per share loss of $1.21, an increase of $41 million and $.18 per share respectively when compared to last year.
From a financial standpoint, the advantage of selling products digitally is the decrease in packaging and distribution costs, as well as the reduced risk that comes with manufacturing projections and phsyical production.
The company was quick to point out its stengths including:
- FIFA 13 selling 7.4 million copies in its first four weeks
- Battlefield 3 Premium selling more than two million subscriptions
- The Simpsons: Tapped Out was the top selling iOS game for the last four weeks
- FIFA 13 and Madden NFL 13 were the two top selling titles in September (in the Western World)
- EA’s Origin online service now boasts more than 30 million registered users
- Need for Speed: Most Wanted released this week to strong reviews
The company addressed (but downplayed) the resoundingly negative reviews and slow sales of Medal of Honor Warfighter, though they acknowledge they expect the softer than projected sales of this game, along with the recent cancellation of NBA Live 13, will result in lower than originally projected Q3 revenues.
Ultimately, the company expects final fiscal ’13 revenues to be somewhere around $4 billion, slightly under FY ’12 which came in at $4.15 billion.
Those interested in all of the nitty gritty can find all of the facts, figures and the entire webcast on EA’s official investor site.