Electronic Arts Inc, the world's largest video-game maker, reported a wider fourth-quarter loss as the company spent more to develop new titles. Sales and profit excluding some costs beat analysts' estimates, Bloomberg reported.
The loss of $94 million, or 30 cents a share, compared with a loss of $25 million, or 8 cents, a year earlier, the company said today in a statement. Excluding costs, Electronic Arts had a profit of 9 cents, beating the average breakeven estimate of 14 analysts surveyed by Bloomberg. Sales rose 84 percent.
Chief Executive Officer John Riccitiello increased spending to develop games by 23 percent to $316 million. The company also had costs from acquisitions including the BioWare and Pandemic game studios. Sales rose on demand for ``Rock Band,'' ``Army of Two'' and ``Burnout Paradise.'' Electronic Arts shares the profit from ``Rock Band,'' which is co-owned by Viacom Inc.
``The bulk of the earnings go to Viacom,'' analyst Todd Greenwald of Signal Hill Capital Group in Baltimore, said in an interview before results were released. ``Electronic Arts books 100 percent of the revenue, so it helps them on the top line, but it doesn't help on the bottom line.''
Acquisitions added 800 people to the company's research and development staff, Chief Financial Officer Eric Brown said in an interview. The company also listed acquisition-related costs of $138 million.
Electronic Arts rose 38 cents to $54.95 in extended trading. Shares of the Redwood City, California-based company gained 30 cents to $54.57 at 4 p.m. New York time in Nasdaq Stock Market trading and have declined 6.6 percent this year.
Sales of $1.13 billion exceeded the $841.8 million average of 20 analysts' estimates compiled by Bloomberg.
For the fiscal year ending next March, Electronic Arts forecasts sales of $4.9 billion to $5.15 billion. The company projects net income of 25 cents to 52 cents a share and profit excluding costs of $1.30 a share to $1.70.
Analysts project profit of $1.70 a share, the average of 16 estimates compiled by Bloomberg, on revenue of $4.56 billion.
Electronic Arts is trying to buy Take-Two Interactive Software Inc., the maker of the top-selling ``Grand Theft Auto'' games. The company's hostile $2 billion, $25.74-a-share, tender offer expires May 16. Take-Two management has resisted the bid, saying the company is worth more. Electronic Arts said on May 9 it arranged $1 billion in loans to help pay for the acquisition.
Take-Two's ``Grand Theft Auto IV,'' released on April 29, generated a record $500 million in retail sales its first week in stores, surpassing the $300 million benchmark set last September by Microsoft Corp's ``Halo 3.''