Electronic Arts posts $454m FY loss

Electronic Arts has posted a $454 million net loss for the year ended March 31st, 2008 – down from a net profit of $76 million in FY 2006-2007.

The company’s acquisition of development duo Bioware and Pandemic back in October, 2007 took its toll on the figure – a combined $620 million expenditure that went through in February this year.

However, the company’s net revenues gave it something to smile about in the 12-month period, reaching $3.67 billion – up from $3.09 billion in the prior year.

For its fourth quarter, EA lost $94 million, up year-on-year from $25 million.

Perhaps the most impressive performence in the company’s fiscal results was its Q4 net revenue. This beat Wall Street expectations, up 84 per cent to $1.13 billion, from $613 million a year earlier. The figure was driven by sales of Rock Band and Army of Two.

The company took restructuring charges of $103 million during the fiscal year, compared with just $15 million the previous year.

It also spent $104 million more on research and development compared with the previous year.

In addition, the company took a $138 million charge for "acquired in-process technology" during the most recent quarter and year.

The firm said it expected a net profit of between 25 cents and 52 cents per share on net revenue of between $4.9 billion and $5.15 billion for FY 2008-2009.

EA did not mention its $2 billion bid for Take-Two in its fiscal report. The company’s ‘hostile’ tender bid expires on Friday.

About MCV Staff

Check Also

Games Day 2026 Header Artwork [Industry news] GTA creators reunite for landmark Scottish games industry event

[Industry news] GTA creators reunite for landmark Scottish games industry event

The Scottish Game Developers Association (SGDA) is proud to announce the return of Games Day 2026, a landmark one‑day event coming to Dundee on Friday 25 September. Building on the success of last year's event alongside DICE Europe, the 2026 edition will unite the creators behind Grand Theft Auto, senior leaders from global studios and platforms, and Scotland's thriving community of independent developers for a day of talks, panels, showcases, and networking.