Earnings: Electronic Arts Slims Q2 Loss; Deferred Revenue Boosts Top Line
This story was written by David Kaplan.
Video gamer Electronic Arts (NSDQ: ERTS) narrowed its Q2 net loss to $95 million from last year's net loss of $132 million, with diluted loss per share was $0.30 as compared with diluted loss per share of $0.42 for the prior year. Meanwhile, EA's Q2 revenue was $804 million, more than double Q207's $395 million, though that was primarily due to deferred revenue. During the quarter, EA had a net benefit of $231 million year-over-year related to the recognition of deferred net revenue for certain online enabled packaged goods games.
-- Non-GAAP net revenue in Q2 was $609 million, up 41 percent as compared with $431 million for the prior year. The growth was credited to the launches of Battlefield: Bad Company and UEFA EURO 2008, as well as the continued strength of Rock Band(tm)."
-- Looking ahead, non-GAAP net revenue is expected to be between $5-$5.3 billion as compared with $4.020 billion in the prior year, a projected gain of 24-32 percent.
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By David Kaplan