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EA slashes Q1 costs as losses widen

Tuesday, 4th August 2009 22:05 GMT By Patrick Garratt

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EA has posted a $234 million loss for the first quarter, compared to a loss of $95 million for the prior year.

Sales were down from $804 million last year to $644 million.

Operational costs, though, were drastically reduced for the period, down to $25 million compared to $239 million a year ago.

“Good execution delivered better-than-expected financial results in the first quarter,” said boss John Riccitiello.

“We are very pleased with the success of both The Sims 3 and EA Sports Active.”

Full-year revenue estimate stuck at between $3.7 and $3.85 billion. A total-year loss per share is expected to be between $0.85 and $1.35.

The conference call’s kicking off now. Get the full financial report here.

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3 Comments

  1. Razor

    “better-than-expected financial results”

    A $234 million loss for 1 quarter is better than expected? Yikes.

    #1 5 years ago
  2. anasui

    maybe they were expecting 235

    anywho, they lost -139 but saved +214. By that logic they “earned” 75

    #2 5 years ago
  3. jnms

    Companies have a crazy language don’t they!?

    Here’s an example; I expect my friend to give me £10 at the pub tonight. When I get there he only gives me £5. So by corporate speak, I have made a £5 loss – even though I am actually £5 in pocket!

    Or am I totally missing something here?

    #3 5 years ago

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