Summary
Electronic Arts Inc. (EA) reported its third-quarter results for the fiscal year ending December 31, 2016, showing a modest year-over-year increase in total net revenue to $1.149 billion, a 7% rise. This growth was primarily driven by a significant 20% increase in digital revenue, reaching $685 million, reflecting the ongoing shift in the company's business model towards digital distribution and services. Despite the revenue growth, the company reported a net loss of $1 million for the quarter, with diluted loss per share of $0.00, a slight improvement from the previous year's net loss of $45 million. Key financial highlights include a substantial increase in short-term investments, bolstering the company's liquidity position, and continued execution of its share repurchase program. EA's management emphasized the ongoing digital transformation of its business, highlighting the importance of recurring revenue streams and the growth in mobile and PC free-to-download games. While international revenue saw a slight decline on a reported basis, constant currency figures suggest a more resilient performance. The company maintains a strong cash position, with total cash, cash equivalents, and short-term investments amounting to $4.219 billion.
Financial Highlights
49 data points| Revenue | $1.15B |
| Cost of Revenue | $516.00M |
| Gross Profit | $633.00M |
| Operating Expenses | $637.00M |
| Operating Income | -$4.00M |
| Interest Expense | -$12.00M |
| Net Income | -$1.00M |
| Shares Outstanding (Basic) | 303.00M |
| Shares Outstanding (Diluted) | 303.00M |
Key Highlights
- 1Total net revenue increased by 7% year-over-year to $1.149 billion for the third quarter.
- 2Digital revenue saw a significant increase of 20% year-over-year, reaching $685 million.
- 3The company reported a net loss of $1 million, an improvement from the $45 million net loss in the prior year's quarter.
- 4Cash, cash equivalents, and short-term investments totaled $4.219 billion, indicating a strong liquidity position.
- 5The company continued its share repurchase program, buying back approximately 1.5 million shares for $127 million during the quarter.
- 6Product revenue increased by 4% to $649 million, while Service and Other revenue grew by 12% to $500 million.