The Freeland File
Global Market Data
Tales from the Trail
Lucy P. Marcus
David Cay Johnston
The Great Debate
Jack & Suzy Welch
Macro & Markets
Lipper Awards 2012
Personal Finance Video
Zinc may shorten common cold but side effects common
Putin pledges unity on return to Kremlin, protesters held
Payment issues hinder Iranian buying team in India
Attempt to form Greece government fails after shock poll
It's a gas: dinosaur flatulence may have warmed Earth
One in seven thinks end of world is coming: poll
April hiring seen picking up
Berkshire profits double as insurance losses fall
"The Avengers" breaks a record, Lohan off the hook
Sun, May 6 2012
Hungry zoo lion faces off with unfazed toddler
Thu, May 3 2012
Beastie Boy Adam Yauch dead at 47
Fri, May 4 2012
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Walking amongst us are the superheroes, whether they're for voting, promoting or protesting. Slideshow
The "Run for Your Lives" race has runners facing obstacles while being chased by zombies. Slideshow
EA loses Star Wars users, shares tumble
Dish Network adds subscribers, beats Street
BroadSoft outlook disappoints; shares fall
Kraft profit beats by a penny
Thu, May 3 2012
LinkedIn raises outlook, beats on profit
Thu, May 3 2012
UPDATE 3-Cablevision adds subscribers, to shop around movie chain
Thu, May 3 2012
Analysis & Opinion
Credit Suisse still shrinking its way to stability
Spotify’s $4 billion pitch sounds high
Hot Stocks »
Asian Markets »
Star Wars Storm Trooper characters cross the street outside the NASDAQ Market Site in New York's Times Square after taking part in ringing the opening bell for the trading day, December 20, 2011.
Credit: Reuters/Mike Segar
By Liana B. Baker
Mon May 7, 2012 5:15pm EDT
(Reuters) - Electronic Arts lost 400,000 subscribers of "Star Wars: The Old Republic" in the fourth quarter, dealing a blow to its efforts to rely on the new game for growth and sending the game maker's shares down about 9 percent.
EA has poured more money and firepower into "Star Wars: The Old Republic" than it has any game in its 30-year history. Wall Street is closely watching to see if the game can succeed, since it could bring EA riches for years to come. If it struggles, EA's earnings will be hurt in future quarters.
Interim Chief Financial Officer Ken Barker said in an interview that EA is pleased with the stability of the game, but it wants to boost the subscriber base up with the release of two expansion packs this quarter that deliver players more content.
The subscriber numbers EA reported on Monday missed some analyst estimates. Brean Murray analyst Todd Mitchell was expecting 1.5 million paying subscribers.
"'Star Wars' is a nice role playing game but people are playing through it and leaving," Mitchell said.
EA had been hoping to take on its biggest rival, Activision Blizzard, which had more than 10 million subscribers to "World of Warcraft" last quarter. "Warcraft" is the 7-year-old Internet game that is Activision's most profitable franchise.
Video game companies such as EA and Activision have been trying to turn gamers from one-time purchasers into subscribers who generate a steady and predictable revenue stream to boost business and protect against economic uncertainty.
EA now expects EPS to be in the range of $1.05 to $1.20 per share for the year on revenue of $4.3 billion. Analysts on average are expecting EPS of $1.12 a share on revenue of $4.49 million, according to Thomson Reuters I/B/E/S. Sterne Agee analyst Bhatia said the company's earnings forecast was light and was likely affected by the performance of "Star Wars.'"
For the fiscal first quarter, the company expects EPS to be a loss of 45 cents per share to 40 cents per share.
Adjusted for the deferral of digital revenue and other items, the company said profit fell 33 percent to $56 million, or 17 cents per share, which beat Wall Street estimates by a penny. Adjusted revenue fell 2 percent to $977 million, which beat analyst estimates of $957.85 million, according to Thomson-Reuters I/B/E/S. Its futuristic game "Mass Effect 3" helped drive sales in the quarter.
The company's digital revenue hit $1.2 billion in the fiscal year. Its shares fell to $1.41, or 9 percent, in aftermarket trading after closing at $15.12 per share on Monday.
(Reporting By Liana B. Baker; editing by Andre Grenon and M.D. Golan)
Related Quotes and News
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.