Today was a relatively busy day for earnings announcements. Networking giant Cisco announced their numbers after the markets close. In addition, in the Entertainment Industry, both Disney and leading game publisher Electronic Arts announced their quarterly results.
For EA, it was a rough day. EA Reported revenue down 4% to 4613m. Even excluding a one time accounting charge, net income was off a whopping 56% to $19m. For EA’s full fiscal year, which ended March 31, revenue was slightly up to $3.1b (up 5% over last year).
The drop was partly attributed to increased costs associated with R&D and marketing associated with the fall/winter release of next generation platforms (Wii, PS3), and the transition of titles which effected the entire industry.
In guidance for the next quarter EA also was cautious. EA forecast revenue for the quarter ending June 30 will fall the range of $300 million to $360 million. Analysts were expecting $460.6 million. The downward adjustment was attributed, in part, to changes in accounting for the way the company books some gaming revenue.
More detailed press coverage on EA’s finances can be found at:
Disney’s reported numbers that analysts were characterizing as decent to good but not impressive. Revenue was in at $8.1b, up 1% over the same period last year. Operating income was reported up to $1.8b from $1.4b.
For the quarter, the film studio revenue (which owns about 1/5 of Disney’s gross income) was down 13% relative to last year to $1.55b on the quarter. But lower costs and fewer high profile titles to market during the quarter helped increase operating income by 60% to $235m. The coming months, with the high profile release of several major titles will be a big test for the quality of the Studio Division’s year. (Pirates of the Caribbean 3 has been a huge earner (info on the earning history of many of this summers sequals can be found here)) is in theaters May 25th, and Pixar’s Ratatouille, comes out June 29th.)
The TV division reported solid returns. Cable channels (ESPN, Disney etc) saw a 19% increase in operating income to $963m. ABC showed solid returns with increased ad-rates in prime time and positive notes on syndication sales of its hits Lost, Desperate Housewives and Grey’s Anatomy.
More detailed press coverage on Disney’s finances can be found at: