EA Financial Report Reveals Drop In Profits Despite Strong Sales

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EA have released their End of Year Financial Report and, as expected following the resignation of CEO John Riccitiello, the figures weren’t quite as good as many had hoped they would be.

Despite strong digital sales, and the success of games such as FIFA ’13, which sold around 30% more copies than last years effort (14.5 million copies in total), revenue for Q4 and the year as a whole were down on last year. However, when you consider that the company reported revenue of over $1.2 billion for the last financial quarter, it’s not all doom and gloom. Last year’s Q4 revenue was £1.368 billion.

EA reports that revenue from digital sales is up from $88 million to $108 million, an increase of 22% on last year. The FIFA franchise was one of their strongest performers in this area, having seen a 94% year on year increase in revenue from digital sales. Battlefield 3’s Premium subscription service raised an extra $130 million while EA’s much troubled-at-launch Sim City sold 1.6 million copies, with around 50% of those sold as digital copies. EA also claims that they were the world’s #1 publisher on the iOS App store this year in terms of revenue.

Over-all EA reports that they have seen net revenue of $3.797 billion in 2013, a much reduced figure compared to EA’s 12 month figure of $4.143 billion in 2012. Despite this disapointment, EA bosses are excited about the company’s future. Executive Chairman Larry Probst underlined this confidence with the following statement –

With world-class games, a rapidly growing digital business, and top-notch creative talent, we are excited about EA’s strategy for FY 2014 and beyond.

EA also emphasised the importance of the new multi-year exclusivity agreement between themselves and Disney, which we reported on yesterday. The company hopes that this agreement will lead to increased sales revenue over multiple platforms, with President of Labels Frank Gibeau stating –

Our agreement unlocks a whole new future of Star Wars games that will span consoles, PCs, tablets, mobile, and more.

With “disappointing” financial results like these, this writer would like to see what EA consider to be a success.

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