Electronic Arts has just announced its third quarter fiscal results for the holiday period ended December 31, 2009. The publisher's sales dipped from $1.65 billion to $1.24 billion as net loss totaled $82 million, compared with a net loss of $641 million for the prior year. It's worth noting that EA had a net revenue deferral of $103 million "related to certain online-enabled packaged goods and digital content" and this deferral will be recognized in future quarters.
EA blamed its total sales decline on the fact that they had fewer titles this holiday quarter, and the weakness of the packaged goods sector in Europe. The key titles driving results for the quarter included Dragon Age: Origins, Left 4 Dead 2, and NBA Live, along with catalog sales of FIFA 10, Madden NFL 10, and The Sims 3. FIFA 10 is particularly noteworthy, as the game has sold 9.7 million units since launch.
EA has been talking about its transition to digital for a while now, and the publisher happily announced today that its digital non-GAAP net revenue was at an all time quarter high at $152 million (up 30%).
“EA is growing share in our packaged goods business and our digital businesses continue to grow rapidly,” said John Riccitiello, Chief Executive Officer. “Mass Effect 2 is the first blockbuster of 2010 and we are looking forward to the launch of Dante’s Inferno and Battlefield Bad Company 2.”
“We are expecting an increase in FY11 full year non-GAAP earnings per share on the basis of strong cost controls and growth in our digital businesses,” added Eric Brown, Chief Financial Officer.
For the fourth fiscal quarter, EA is forecasting net revenue in the range of $925 million to $1.0 billion. For the first quarter of fiscal 2011 (which starts this April), EA is anticipating net revenue to be approximately $710 to $750 million. And for the full 2011 fiscal year, EA is forecasting revenue between $3.45 billion and $3.70 billion, with a loss per share of ($0.60) to ($0.90).
