EA narrows losses but sales decline

Publisher lost $45 million during the final three months of 2012

Electronic Arts brought in noticeably less money than usual during the last three months of the year, though a tighter grip on its finances ensured that its overall loss wasn't as traumatic as it might have been.


In the final calendar quarter of 2011, the corporation achieved an eye-watering loss of $205 million. One year later the company didn't manage to swing to profit, but it did trim its losses to $45 million.

While EA's consistent net losses suggest the publisher's struggles are deep-rooted, the company assures that more positive portions of its business have not been declared yet - but will come good in the future.

A key example is the $108 million already made via Battlefield 3's premium subscription service.

Digital was again the discussion point during EA's earnings presentation on Wednesday. The publisher cited the additional $100 million it made in the sports games sector alone through selling virtual goods and digital content.

It also claimed that iOS title The Simpsons: Tapped Out made $23 million before expenses were factored in (these were likely high, especially due to the licence agreement with 20th Century Fox).

In the short term, a more clear-cut failure was the company's 13 per cent revenue decline. This was primarily put down to the poor performance of Medal of Honor - a game series that is now being retired.

EA shares were down 1.9 per cent, at $14.8, in after-hours trading on Wednesday.