Summary
Electronic Arts Inc. (EA) reported solid financial results for the quarter ended June 29, 2016. Total net revenue increased by 6% year-over-year to $1.271 billion, driven by a significant 28% increase in service and other revenue, which was partially offset by a 8% decrease in product revenue. Digital revenue showed strong growth, up 11% year-over-year to $689 million, indicating the company's successful transition towards digital distribution. Net income for the quarter was $440 million, resulting in diluted earnings per share of $1.40. The company maintained a strong balance sheet with total cash, cash equivalents, and short-term investments of $3.427 billion. EA also continued its commitment to returning capital to shareholders, repurchasing approximately $129 million of common stock during the quarter under its existing share repurchase program.
Financial Highlights
48 data points| Revenue | $1.27B |
| Cost of Revenue | $179.00M |
| Gross Profit | $1.09B |
| Operating Expenses | $532.00M |
| Operating Income | $560.00M |
| Interest Expense | -$13.00M |
| Net Income | $440.00M |
| EPS (Basic) | $1.46 |
| EPS (Diluted) | $1.40 |
| Shares Outstanding (Basic) | 301.00M |
| Shares Outstanding (Diluted) | 315.00M |
Key Highlights
- 1Total net revenue grew 6% year-over-year to $1.271 billion.
- 2Service and other revenue saw a substantial increase of 28% year-over-year, reaching $587 million.
- 3Digital revenue increased by 11% year-over-year to $689 million, reflecting the company's digital strategy.
- 4Net income was $440 million, translating to diluted earnings per share of $1.40.
- 5The company maintained a healthy liquidity position with $3.427 billion in cash, cash equivalents, and short-term investments.
- 6Electronic Arts actively repurchased $129 million of its common stock during the quarter.
- 7The company successfully repaid its 0.75% convertible senior notes due 2016 in July 2016.