Summary
Electronic Arts Inc. (EA) reported its annual results for the fiscal year ending March 31, 2011. The company experienced a slight decline in overall net revenue to $3.59 billion, a decrease from $3.65 billion in the previous year. This revenue dip was primarily attributed to a strategic decision to reduce the number of games published, focusing on higher-margin opportunities and established franchises like FIFA, Battlefield, and Madden NFL. Despite the revenue decrease, EA significantly narrowed its net loss to $276 million from $677 million in the prior year, driven by improved gross profit margins and cost reduction initiatives, including a decrease in research and development expenses. Key developments during the fiscal year included the announcement of a $600 million stock repurchase program and continued strategic investments in digital content distribution and mobile platforms, highlighted by the acquisition of Chillingo. The company is also preparing for the launch of highly anticipated titles such as "Star Wars: The Old Republic." EA's international revenue showed growth, now representing 49% of total net revenue, indicating a strong performance outside of North America. Investors should note the ongoing shift towards digital distribution and services as a key growth driver.
Financial Highlights
49 data points| Revenue | $3.59B |
| Cost of Revenue | $1.50B |
| Gross Profit | $2.09B |
| Operating Expenses | $2.40B |
| Operating Income | -$312.00M |
| Interest Expense | $1.00M |
| Net Income | -$276.00M |
| EPS (Basic) | $-0.84 |
| EPS (Diluted) | $-0.84 |
| Shares Outstanding (Basic) | 330.00M |
| Shares Outstanding (Diluted) | 330.00M |
Key Highlights
- 1Net revenue decreased slightly to $3.59 billion from $3.65 billion in the prior fiscal year.
- 2Net loss narrowed significantly to $276 million from $677 million in the prior fiscal year, demonstrating improved profitability.
- 3The company reduced its total published titles from 54 in FY2010 to 36 in FY2011, focusing on higher-margin opportunities and key franchises.
- 4Digital content distribution and services revenue increased to $743 million, a significant growth from $522 million in FY2010.
- 5Announced a $600 million stock repurchase program, signaling confidence and a commitment to shareholder returns.
- 6International net revenue grew by 8% to $1.75 billion, representing 49% of total net revenue.
- 7Acquired Chillingo Limited, a key player in the mobile games market, to strengthen its digital and mobile offerings.