EA Shares Plunge as Game Firm Cuts Profit Outlook
Video game publisher Electronic Arts says its second-quarter net loss widened as development and marketing costs grew, and the company's shares dropped sharply as it cut its earnings outlook.
Though EA kept its full-year revenue forecast intact, it lowered its full-year profit outlook range, and shares of the company were down about 15 percent in extended trading.
Electronic Arts said Thursday it lost $310 million, or 97 cents per share, in the July-September period. That was worse than the loss of $195 million, or 62 cents per share, a year earlier.
EA's sales jumped 40 percent to $894 million.
Excluding one-time items, EA says it lost 6 cents a share in the latest quarter, matching the expectation of analysts polled by Thomson Reuters.
Adjusted sales, which exclude deferred revenue for some online games, were $1.13 billion, beating expectations for $1.08 billion.
EA ended talks to buy smaller rival Take-Two Interactive Software in September, more than half a year after it first made its offer public.
The companies had signed a nondisclosure agreement in August after EA let a deadline for a $2 billion tender offer to buy the "Grand Theft Auto" publisher expire. Take-Two had wanted more money, rejecting the bid repeatedly, while EA maintained that its offer was "fair and full."
-CNBC.com staff contributed to this report.