Summary
Electronic Arts Inc. (EA) reported total net revenue of $959 million for the third quarter of fiscal year 2018, a 7% increase year-over-year, driven by strong performance in its digital segment. Digital net revenue saw a significant 22% increase, reaching $689 million, fueled by growth in full game downloads and live services, particularly from popular franchises like FIFA and Battlefield. Despite revenue growth, the company reported a net loss of $22 million for the quarter, compared to a loss of $38 million in the prior year's comparable quarter. Operating expenses increased by 12% year-over-year, impacting profitability. The company ended the quarter with a strong liquidity position, holding $4.355 billion in cash, cash equivalents, and short-term investments. EA also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
48 data points| Revenue | $959.00M |
| Cost of Revenue | $389.00M |
| Gross Profit | $570.00M |
| Operating Expenses | $611.00M |
| Operating Income | -$41.00M |
| Interest Expense | -$11.00M |
| Net Income | -$22.00M |
| EPS (Basic) | $-0.07 |
| EPS (Diluted) | $-0.07 |
| Shares Outstanding (Basic) | 309.00M |
| Shares Outstanding (Diluted) | 309.00M |
Key Highlights
- 1Total net revenue increased by 7% year-over-year to $959 million, driven by a 22% increase in digital net revenue to $689 million.
- 2Live services and full game downloads were key drivers of digital revenue growth.
- 3Despite revenue growth, EA reported a net loss of $22 million for the quarter, a slight improvement from the $38 million net loss in the prior year.
- 4Operating expenses increased by 12% year-over-year, impacting profitability.
- 5The company maintained a strong liquidity position with $4.355 billion in cash, cash equivalents, and short-term investments.
- 6EA actively repurchased approximately $153 million worth of its common stock during the quarter under its new $1.2 billion repurchase program.