EA Reports Revenue Decline in Q2 2011; Nearly Halves Losses Over Same Period Last Year

BOOM widget 136420 Yesterday, Electronic Arts released its financial report for the second quarter of the fiscal year 2011--ending September 30, 2010--posting a $156 million decline versus the same period last year.

Netting $631 million in revenue, EA managed to cut its total net loss by nearly half. In its Q2 2010 report, EA posted a quarterly loss of $391 million versus $201 million during Q2 2011.

In the Q2 2011 report, EA notes that it was the "#1 publisher on high-definition consoles with 25% segment share calendar year-to date." The publisher and developer giant also claims to have held the top spot in the PC market, with a "27% segment share at retail calendar year-to-date," sporting "strong growth in digital downloads" of full-game software.

EA also claimed to command the iTunes App Store as the #1 publisher on all Apple platforms--presumably, the acquisition of publisher Chillingo will help the company maintain its grip on iOS devices.

On the company's performance for the recorded quarter, EA CEO John Riccitiello said "We credit our results to blockbusters like FIFA 11 and to innovative digital offerings like The Sims 3 Ambitions and Madden NFL 11 on the iPad." Worldwide, the FIFA Soccer franchise has sold over 100 million units.

For the quarter, EA held six of the top 20 selling titles released in the West: FIFA Soccer 11, Madden NFL 11, NCAA Football 11, NHL 11, Battlefield: Bad Company 2, and FIFA Soccer 10.

Although it was not included in the Q2 2011 results, EA proclaimed that Medal of Honor is off to a "strong start, selling-through 2 million units in just two weeks in October."

EA plans to execute a "cost reduction plan," where the company will "restructure key licensing and developer agreements to improve the long-term profitability of its packaged goods portfolio." Benefits from the restructuring--which will cost the company $180 million in generally accepted accounting principles (GAAP) charges--are "expected" to see the light of day in fiscal 2012 and beyond.

Clearly, it's a case of 'You have to spend money to lose as little as you possibly can.'

[Ed. Note: Originally this post listed FIFA Soccer 11 as selling 100 million units, whereas we meant to list the FIFA Soccer franchise as a whole. We have corrected the error and called EA to let them know to cancel that "Ferrari and Champagne" party they started planning after they read this post.]