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Electronic Arts Reports Q1 FY14 Financial Results

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its first fiscal quarter ended June 30, 2013.

“EA had a solid quarter driven by continued digital growth and disciplined cost management,” said Executive Chairman Larry Probst. “We are also executing on a clear set of goals for leadership on mobile, PC, current and next generation consoles.”

“EA delivered first quarter EPS above our guidance through a combination of revenue growth, phasing of expenses, and cost control,” said Chief Financial Officer Blake Jorgensen. “We are reaffirming our annual non-GAAP guidance of $4 billion net revenue and $1.20 earnings per share.”

This release, along with ongoing updates regarding EA’s business, is available on EA’s blog at http://ea.com/news.

Selected Operating Highlights and Metrics: *On a non-GAAP basis

  • EA was the #1 publisher in Western retail markets in calendar year 2013, and the #1 global publisher in the iOS game market in the June quarter.
  • EA received 116 E3 awards from over 220 industry nominations, including 8 out of 15 awards from the official E3 Game Critics. Battlefield 4™ won a total of 21 awards at E3, including GameSpot’s Best of E3 award , Need for Speed™ Rivals was named Best Racing Game, and NHL® 14 took the honors for Best Sports Game. Titanfall™ from Respawn Entertainment won six major awards, including Best of Show, Best Original Game, Best Console Game, Best PC Game, Best Action Game and Best Online Multiplayer.
  • The Simpsons™: Tapped Out recorded its highest revenue quarter* in Q1 since launching in August 2012.
  • EA’s mobile and handheld digital revenue generated $103 million* in the quarter, a 30% year-over-year increase in digital net revenue.
  • Real Racing™ 3, the #1 racing title on iOS, has generated more than 45 million downloads, and has averaged over 2 million daily active users since launching in March.
  • The Battlefield 3™ Premium community continues to grow with over 4 million members to date.
  • FIFA 13 digital net revenue topped $70 million* in the quarter, a 92% increase versus FIFA 12 in Q1 FY 2013.
  • FIFA Online 3 digital net revenue in grew 88%* in the first quarter compared FIFA Online 2 in the prior year, and was the #1 online sports game in Korea based on revenue and traffic.
  • EA signs publishing agreement with TenCent for FIFA Online 3 in China, with details to be announced in an upcoming joint press release from EA and TenCent.
  • EA’s Origin™ platform for downloading digital games has registered over 50 million users, including 22 million mobile users.
  • Trailing twelve-month non-GAAP digital net revenue was up 28% to a record $1.72 billion*.

Q1 Financial Highlights:

For the quarter, non-GAAP net revenue of $495 million was above our guidance of $450 million. Non-GAAP diluted loss per share of ($0.40) was above our guidance of ($0.62).

 

 

(in millions of $, except per share amounts)

 

QuarterEnded6/30/13

 

QuarterEnded6/30/12

 
GAAP Digital Net Revenue $ 482 $ 342
GAAP Publishing Packaged Goods and Other Net Revenue 452 592
GAAP Distribution Packaged Goods Net Revenue   15       21  
GAAP Total Net Revenue $ 949     $ 955  
 
Non-GAAP Digital Net Revenue $ 378 $ 324
Non-GAAP Publishing Packaged Goods and Other Net Revenue 102 146
Non-GAAP Distribution Packaged Goods Net Revenue   15       21  
Non-GAAP Total Net Revenue $ 495     $ 491  
 
GAAP Net Income $ 222 $ 201
Non-GAAP Net Loss (121 ) (130 )
GAAP Diluted Earnings Per Share 0.71 0.63
Non-GAAP Diluted Loss Per Share (0.40 ) (0.41 )
 
Cash Used in Operations ($248 ) ($244 )
 

Trailing Twelve Month (TTM) Financial Highlights:

 

(in millions of $)

 

TTMEnded6/30/13

 

TTMEnded6/30/12

 
GAAP Net Revenue $3,791 $4,099
GAAP Net Income 119 56
Non-GAAP Net Revenue 3,797 4,153
Non-GAAP Net Income 273 277
 
Cash Provided by Operations $320 $307

Business Outlook as of July 23, 2013

The following forward-looking statements, as well as those made above, reflect expectations as of July 23, 2013. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA’s annual and quarterly SEC filings.

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