Sales at games giant soar 50pc but profits flat
PROFITS at the Irish arm of games giant Electronic Arts were flat last year despite sales soaring by almost 50pc.
New figures filed by Electronic Arts Ireland show pre-tax profits were €243,628 in the 12 months to the end of March 31 -- the slight increase in profits coincided with revenues increasing by 47pc from €15m to €22.1m.
Numbers employed at the Galway facility almost doubled last year from 180 to 328. A factor behind profits remaining flat last year was non-cash deprec-iation costs more than tripling, from €918,447 to €3.4m last year.
Electronic Arts is one of the leading games firms in the world. Its portfolio includes the 'FIFA' soccer series, 'Star Wars', 'Harry Potter', 'Battlefield' and 'Medal of Honour' (pictured). The corporation's global revenues in fiscal 2013 totalled $3.8bn, boosted by the sale of 14.5 million units of 'FIFA 13'. EA recently released the much anticipated 'FIFA 14'.
Staff at the Galway facility provide multi-lingual customer support for its major game titles.
The firm opened in Galway in 2011. A year later, Taoiseach Enda Kenny announced the creation of 300 further jobs at the site.
The filings for fiscal 2013 confirm that the Irish firm received employment grants totalling €3.63m from the IDA, following similar IDA grants of €1.1m in 2012.
Staff costs last year increased sharply from €6.7m to €11.42m and a note attached to the accounts states that the staff cost figures are net of the IDA employment grants.
A breakdown of the numbers employed show 310 engaged in customer supp-ort and sales, 11 in admini-stration and seven in IT.
The terms of the IDA grant state that if employ-ment levels fall in future periods, a proportion of the claim may become repay-able, along with a charge to the profit and loss account incurred. Operating profits last year totalled €419,702.