Today, Electronic Arts reported $1.18 billion in net revenue for its third fiscal quarter of 2013, down 28.5 percent year-over-year.
CEO John Riccitiello said the below-expected earnings was largely due to the disappointing performance with its recent Medal of Honor release, as well as the increasingly challenging packaged goods market.
The company revealed it saw sales of $1.18 billion, based on non-GAAP (generally accepted accounting principles) reporting. This is below the company’s guidance of $1.25 billion. Non-GAAP diluted earnings per share (EPS) were $0.57, while GAAP loss per share was $($0.15).
GAAP net loss for the quarter was ($45 million), up from ($205 million) in Q3 2012. Non-GAAP net income for the quarter was $176 million, down from $334 million in Q3 2012. EA said it expects digital revenue for the year to total around $1.6 billion.
Overall, the company’s digital revenue for Q3 2013 amounted to $321 million, up from $274 million in Q3 2012. Mobile, including handhelds, contributed approximately $100 million to this total. The company credited its mobile titles as the key reason for this growth, citing The Simpsons: Tapped Out as a particular highlight that generated more than $23 million during the quarter. No breakdown was mentioned for the company’s social games like The Sims Social, SimCity Social or JetSet Secrets.
Last quarter, we noted Electronic Arts was shifting its development focus away from social to mobile, either delaying or flat-out killing 10 different social projects. This is in keeping with what we’ve heard from industry insiders, who recently told us EA has moved BioWare Social’s Sacramento office (formerly KlickNation) away from all social projects to work on mobile titles instead. This quarter, EA’s earnings report shows eight social titles are being worked on, though none of these are new IP.
On the earnings call, Riccitiello was enthusiastic about EA’s upcoming (and much-touted) mobile title Real Racing 3, due out on Feb. 28.