Video-game publisher Electronic Arts Inc. (EA: Quote) said Tuesday after the markets closed that its second quarter loss widened from last year, as revenue declined.
However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, and its revenue matched analysts' estimate.
At the same time, the company forecast third quarter revenue and earnings below analysts' current consensus estimates, and lowered its revenue and earnings outlook for the fiscal year 2013.
"EA is performing well, once again beating street consensus in fiscal Q2," said EA Chief Executive Officer John Riccitiello. "We delivered yet another quarter of sharp digital growth, with digital revenue up 40% compared to the same period last year, reflecting our strength across multiple brands and channels."
Net digital revenue for the quarter rose 38.5% to $324 million from $234 million a year ago, while net publishing packaged goods and other revenue fell 19% to $365 million from $450 million last year. Net distribution packaged goods revenue for the quarter dropped 32% to $21 million from $31 million a year earlier.
The company said games and services for mobile have generated a 60% year-over-year increase in digital net revenue.
FIFA 13 sold through 7.4 million units, excluding mobile downloads, in its first four weeks to become the biggest sports launch of all-time.
EA was the #1 publisher in the Western World in calendar year 2012 to date, with five of the top seven titles.
For the second quarter ended September 30, 2012, Electronic Arts reported a net loss of $381 million or $1.21 per share, compared to a net loss of $340 million or $1.03 per share for the year-ago quarter.
Excluding the impact of the change in deferred revenue and other items, adjusted net income for the second quarter was $49 million or $0.15 per share, compared to $17 million or $0.05 per share in the prior year quarter.
On average, 26 analysts polled by Thomson Reuters expected the company to earn $0.11 per share for the second quarter. Analysts' estimates typically exclude special items.
Net revenue for the second quarter declined to $711 million from $715 million a year ago, while adjusted net revenue for the quarter rose 4.4% to $1.08 billion from $1.03 billion last year due to strong performance of the company's digital business. Twenty-five had a consensus revenue estimate of $1.08 billion for the second quarter.
For the second quarter, the company had forecast net revenue of $650 to $700 million, adjusted net revenue of $1.05 to $1.10 billion, a net loss of $1.43 to $1.36 per share and adjusted earnings of $0.07 to $0.12 per share.
The company repurchased $108 million of shares of its common stock during its second fiscal quarter pursuant to a $500 million stock buyback program announced in July.
Looking forward to the third quarter, the company forecast net revenue of $0.90 billion to $1.00 billion, adjusted net revenue of $1.25 billion to $1.35 billion, a net loss of $0.71 to $0.57 per share and adjusted earnings of $0.50 to $0.60 per share.
Analysts currently expect the company to earn $0.71 per share on revenue of $1.39 billion for the third quarter.
For the fiscal year 2013, the company now expects net revenue of $3.85 to $4.00 billion and adjusted. net revenue of $4.05 to $4.20 billion. Previously, the company expected net revenue of $3.90 to $4.05 billion and adjusted. net revenue of $4.10 to $4.25 billion.
The company said it now expects a net loss in the range of $0.27 to $0.06 per share for fiscal year 2013. Previously, the company expected fiscal 2013 GAAP results to range between a loss of $0.17 per share to profit of $0.05 per share.
The company also lowered its fiscal 2013 adjusted earnings guidance to a range of $1.00 to $1.15 per share from its prior guidance of $1.05 to $1.20 per share.
Analysts currently expect the company to earn $1.05 per share on revenue of $4.13 billion for the fiscal year 2013.
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by RTT Staff Writer
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