Summary
Electronic Arts Inc. (EA) reported a significant turnaround in its financial performance for the six months ended September 30, 2014, compared to the same period in the prior year. The company achieved a net income of $338 million, a substantial improvement from a net loss of $51 million in the prior year. This positive shift was driven by a robust increase in net revenue, which grew by 34% to $2.204 billion, bolstered by strong performance in both its product and service segments, with key franchises like FIFA and Battlefield leading the charge. The company also highlighted its ongoing digital transformation, with digital revenue showing strong growth. EA demonstrated a commitment to shareholder returns through a substantial stock repurchase program, buying back $145 million worth of shares during the six-month period. The balance sheet remains solid, with total assets increasing to $6.031 billion and a healthy cash position of $1.624 billion. The company appears to be successfully navigating the console transition and focusing on its core intellectual properties, positioning itself for continued growth in the evolving gaming landscape.
Financial Highlights
49 data points| Revenue | $990.00M |
| Cost of Revenue | $427.00M |
| Gross Profit | $563.00M |
| Operating Expenses | $539.00M |
| Operating Income | $24.00M |
| Interest Expense | -$8.00M |
| Net Income | $3.00M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.01 |
| Shares Outstanding (Basic) | 313.00M |
| Shares Outstanding (Diluted) | 322.00M |
Key Highlights
- 1Total net revenue increased by 34% to $2.204 billion for the six months ended September 30, 2014, compared to $1.644 billion in the prior year.
- 2Achieved a net income of $338 million for the six months ended September 30, 2014, a significant turnaround from a net loss of $51 million in the same period last year.
- 3Product revenue grew by 45% to $1.293 billion, and Service and other revenue increased by 21% to $911 million for the six-month period.
- 4Digital revenue, encompassing full-game downloads, extra content, subscriptions, and mobile, increased by 29% to $935 million for the six-month period.
- 5The company repurchased approximately 4.0 million shares of common stock for $145 million during the six months ended September 30, 2014, under a new $750 million stock repurchase program.
- 6Cash and cash equivalents remained strong at $1.624 billion as of September 30, 2014, with total short-term investments adding another $764 million.
- 7The company reported a positive operating income of $386 million for the six-month period, a significant improvement from an operating loss of $19 million in the prior year.