Video-game stalwart Electronic Arts
Revenue in the quarter jumped 26% to $1.37 billion, with net income of $400 million, or $1.20 per share. On a non-GAAP basis, total revenue was just $977 million with $0.17 per share in profit. The company continues to focus on digital growth, with CEO John Riccitiello saying EA is taking on a "very different profile than the traditional game companies."
EA's PopCap games continues to grow on mobile platforms, looking to take on the likes of Zynga
Source: EA. Star Wars: The Old Republic.
After the game launched last fiscal quarter, seeing 2 million unit sales and 1.7 million active padawan subscribers, that figure has promptly plunged 24% to just 1.3 million subscribers after players opted not to renew their 30-day free trials. That's a troubling start for a game that EA was hoping would be a major growth driver as EA's push into the MMORPG world.
The real question is whether or not those Jedis are putting down their light sabers in favor of a good old-fashioned axe in Activision Blizzard's
EA's guidance also left a lot to be desired. First-quarter adjusted revenue is expected to be about $500 million, with a loss per share between $0.40 and $0.45. Those figures are worse than the $579.4 million in sales and $0.33 per share loss that the Street thought was in order.
The game maker has hit a fresh 52-week low today, and while it recognizes that it needs to strategically focus on digital and mobile platforms, it's having trouble delivering.
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Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Fool owns shares of and has written calls on Activision Blizzard. Motley Fool newsletter services have recommended buying shares of and creating a synthetic long position in Activision Blizzard. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.