Summary
Electronic Arts Inc. (EA) reported strong financial performance for the fiscal year ending March 31, 2015, with net revenue increasing 26% to $4.515 billion, and net income surging to $875 million from $8 million in the prior year. This significant growth was driven by key franchises like FIFA and Madden NFL, alongside the performance of Battlefield 4. The company continues its strategic shift towards digital revenue, which showed a substantial increase, indicating a successful transition from traditional packaged goods. EA also demonstrated a commitment to shareholder returns through an active stock repurchase program. The company's strategy focuses on putting players first, embracing a digital-first approach, and operating as 'One EA.' EA maintained its position as a top publisher on current-generation consoles (PlayStation 4 and Xbox One) and saw significant engagement with its mobile titles, averaging over 165 million monthly active users. The company is investing in its digital platform to enhance player relationships and is seeing higher margins from digital revenue. Despite a competitive market and industry cyclicality related to console transitions, EA's diversified portfolio and focus on digital transformation position it for continued growth.
Financial Highlights
51 data points| Revenue | $4.51B |
| Cost of Revenue | $1.43B |
| Gross Profit | $3.09B |
| Operating Expenses | $2.14B |
| Operating Income | $948.00M |
| Interest Expense | $31.00M |
| Net Income | $875.00M |
| EPS (Basic) | $2.81 |
| EPS (Diluted) | $2.69 |
| Shares Outstanding (Basic) | 311.00M |
| Shares Outstanding (Diluted) | 325.00M |
Key Highlights
- 1Net revenue increased by 26% to $4.515 billion in fiscal year 2015, driven by strong performance of key franchises like FIFA and Madden NFL.
- 2Net income saw a dramatic increase to $875 million, up from $8 million in fiscal year 2014.
- 3Digital net revenue grew by 24% to $2.230 billion, becoming an increasingly significant portion of the company's overall revenue.
- 4The company averaged over 165 million monthly active users (MAUs) on its mobile titles, highlighting strong player engagement.
- 5EA continued its focus on current-generation consoles, being a top publisher on PlayStation 4 and Xbox One.
- 6The company repurchased approximately 8.3 million shares for $337 million in fiscal year 2015 and announced a new $1 billion stock repurchase program in May 2015.
- 7Research and Development expenses slightly decreased to $1.094 billion, while Marketing and Sales expenses also decreased to $647 million, contributing to improved profitability.