ELECTRONIC ARTS INC. Quarterly Report for Q2 Ended Sep 30, 2016

Summary

Electronic Arts Inc. (EA) reported its fiscal second quarter and first half results for the period ending September 30, 2016. The company saw a 10% year-over-year increase in total net revenue to $898 million for the quarter, driven by a strong performance in 'Service and other' revenue, which grew 25%. Digital net revenue also showed robust growth, increasing 13% to $566 million for the quarter. Despite top-line growth, EA reported a net loss of $38 million for the quarter, compared to a net loss of $140 million in the prior year period. The first half of the fiscal year, however, resulted in a net income of $402 million, a significant improvement from $302 million in the prior year. The company's liquidity position remains strong, with total cash, cash equivalents, and short-term investments at $3.27 billion as of September 30, 2016.

Key Highlights

• 1Total net revenue for the three months ended September 30, 2016, increased by 10% year-over-year to $898 million.
• 2Service and other revenue saw a significant 25% increase year-over-year, reaching $478 million for the quarter.
• 3Digital net revenue grew 13% to $566 million for the quarter, indicating a successful digital transformation.
• 4EA reported a net loss of $38 million for the three months ended September 30, 2016, compared to a net loss of $140 million in the prior year.
• 5For the six months ended September 30, 2016, net income was $402 million, a substantial increase from $302 million in the same period last year.
• 6Total cash, cash equivalents, and short-term investments stood at $3.27 billion as of September 30, 2016, demonstrating a strong liquidity position.
• 7The company actively repurchased shares, with approximately $127 million spent on repurchases during the quarter.

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