EA losses deepen to $340m

EA losses deepen to $340m

By Rob Crossley

October 28th 2011 at 9:56AM

Revenues up but shares fall after 'conservative' projections

EA lost $340 million across July, August and September, the company has announced.

Revenues for the period increased by 22.5 per cent to $715 million. Gross profit was $283 million, though operating costs of $657 million helped sink EA to a sizable loss. 

Of those operating costs, $222 million was attributed to marketing, and $318 million was attributed to development costs.

Total sales reached $1.03 billion, but shares fell more than 4 per cent in after-hours trading.

Reuters claims investors were puzzled the company did not raise its earnings outlook by more. For the full year, the company raised its outlook to a range of 75 cents to 90 cents per share, compared with a previous range of 70 cents to 90 cents.