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EA digital revenue grows to $1.2 billion in fiscal 2012 as company sees profits grow

EA digital revenue grows to $1.2 billion in fiscal 2012 as company sees profits grow

Mon 07 May 2012 8:36pm GMT / 4:36pm EDT / 1:36pm PDT
BusinessOnlineFinancial

EA's digital growth is driving the company's margins

Electronic Arts has posted its fourth-quarter and full-year earnings for the period ended on March 31, 2012, and the highlight for the company is clearly its continued growth in digital, which is up 47 percent year-over-year.

"We are proud to report a strong quarter and a fiscal year highlighted with $1.2 billion of digital revenue," said Chief Executive Officer John Riccitiello. "In the coming year, we break away from the pack, with a very different profile than the traditional game companies and capabilities that none of our new digital competitors can match."

Fourth quarter net income grew from $151 million to $400 million while revenues grew from $1.09 billion to $1.368 billion. EA ended the quarter with $1.3 billion in cash, which is down from $1.6 billion a year ago. On a trailing twelve month basis, revenues grew from $3.589 billion to $4.143 billon and net income climbed from a loss of $276 million to a profit of $76 million.

The publisher said that its strong results were driven by Mass Effect 3, FIFA Street 4, SSX and Kingdoms of Amalur: Reckoning. Digital also contributed enormously in a number of ways. FIFA had its best year ever for the franchise with downloads and micro-transactions totaling $108 million (on a non-GAAP basis). EA's Play4Free brands are also generating an average of nearly $2 million (non-GAAP) per week. The company is planning more EA brands for the Play4Free portal in fiscal '13.

Additionally, full-game downloads were up 76 percent year-over-year in Q4, contributing $60 million (non-GAAP) in the quarter, which EA attributed largely to Mass Effect 3 and Star Wars: The Old Republic, which has 1.3 million active subscribers at the moment. Speaking of digital downloads, EA's Origin service has registered 11 million players and generated approximately $150 million (non-GAAP) in ten months.

"Digital growth drove our margins in fiscal 12 and we project this trend will continue in fiscal 13," said Interim Chief Financial Officer Ken Barker. "We saw more than 20 percent non-GAAP diluted EPS growth in fiscal 12, and are guiding to more than 30 percent growth in fiscal 13 based on the midpoint of our guidance."

For the 2013 fiscal year, EA's projecting net revenues of about $4.075 billion and GAAP loss per share between $0.36 and $0.16.

5 Comments

Christopher Bowen
Editor in Chief

405 539 1.3
This is a great day if you're an EA investor.

It's an awful day if you're a gamer who values his wallet.

Posted:2 years ago

#1
EA still seems like a disaster waiting to happen to me:

"On a trailing twelve month basis, revenues grew from $3.589 billion to $4.143 billon and net income climbed from a loss of $276 million to a profit of $76 million"

"For the 2013 fiscal year, EA's projecting net revenues of about $4.075 billion and GAAP loss per share between $0.36 and $0.16"

"EA ended the quarter with $1.3 billion in cash, which is down from $1.6 billion a year ago"

Good luck to them...

Posted:2 years ago

#2

Raf Keustermans
CEO, co-founder Plumbee

28 2 0.1
"This is a great day if you're an EA investor."

Er, have you checked the share price? $14 now, down almost 10% after hours, it was $50+ in 2008...

Posted:2 years ago

#3

Peter Dwyer
Games Designer/Developer

481 290 0.6
EA are on a hiding to nothing. Their tactics of fleecing the players doesn't work anymore (one of the reasons they ended up voted the worst company in America). They are looking increasingly like a ship without a rudder.

Posted:2 years ago

#4

Bruce Everiss
Marketing Consultant

1,692 594 0.4
You can see the huge influence of Kristian Segerstrale here. They are one of the very few boxed game publishers to have successfully embraced digital distribution, though obviously there is still vast room for improvement in this area. New entrants to the market are still way ahead.

The non digital performance has been pretty subdued for years. Their policy of trying to do everything contrasts sharply with the more successful Activision strategy of focus.

Posted:2 years ago

#5

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