EA -2.3% AH on revenue miss, light FQ4 guidance

In addition to missing FQ3 revenue estimates by $90M, Electronic Arts (EA) is guiding for FQ4 revenue of $800M and EPS of $0.09, below a consensus of $827.2M and $0.10.

Revenue from digital channels rose 27% Y/Y in FQ3 to $407M. Sales from traditional game publishing and other channels, boosted by the Xbox One/PS4 launches, rose 38% to $742M.

Xbox/PS4-related sales totaled $392M in FQ3 (25% of total revenue). Xbox 360/PS3-related sales fell 4% to $707M, and total console-related revenue rose 47% to $1.11B (71% of total revenue).

Mobile game-related sales rose 25% Y/Y to $124M, and made up 8% of revenue. The Simpsons: Tapped Out has now produced $130M in revenue over its lifetime.

Thanks to job cuts, R&D spend fell 1% Y/Y to $275M, and sales/marketing spend fell 3% to $214M.

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Comments (5)
  • Matthew Davis
    , contributor
    Comments (4749) | Send Message
    And these arrogant board members scoffed at making games for Wii U, as if it could've hurt, it certainly wouldn't have for cross platform games, these guys are incompetent.
    28 Jan 2014, 08:09 PM Reply Like
  • chopchop0
    , contributor
    Comments (5341) | Send Message
    Wii U is losing Nintendo plenty of money. Probably not a dumb decision
    28 Jan 2014, 10:56 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4749) | Send Message
    Wii U is losing money for poor marketing and lack of 3rd party development such as EA, who could have really bolstered the Wii U. I got one for my kid and I have to say its more impressive than I thought it would be. The graphics are much better than I anticipated, they are much better than a Xbox 360. Its in between, better than 360 but not a One.
    29 Jan 2014, 10:00 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (690) | Send Message
    So what's up with the link on the home page?


    The link on the front page states "EA Cuts Xbox Sales Outlook" yet in the report there's only a mention of Xbox 360/PS3 sales falling 4% and Xbox One/PS4 sales boosted. Nothing about only Xbox sales outlook being cut.
    28 Jan 2014, 08:20 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3552) | Send Message
    Have to say this management team is one of my least favorite in any industry, right up there with the HPQ Board of Directors


    Buggy releases, low employee morale, slash and burn cuts
    28 Jan 2014, 09:12 PM Reply Like
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