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EA improves revenues and profit in Q1, delays Dragon Age

EA improves revenues and profit in Q1, delays Dragon Age

Tue 22 Jul 2014 8:06pm GMT / 4:06pm EDT / 1:06pm PDT
PublishingFinancial

Thanks in part to Titanfall, the publisher beat expectations to kick off its 2015 fiscal year; Dragon Age and Battlefield now pushed back

For Electronic Arts' first fiscal quarter ended on June 30, the company clearly benefitted from its blockbuster release Titanfall, as it beat expectations and improved both revenues and net income. On a GAAP basis, the publisher boosted its sales to $1.2 billion (up from $949 million a year ago) and its profit rose from $222 million to $335 million.

On a non-GAAP basis, EA's revenues climbed from $495 million to $775 million while the company improved from a net loss of $121 million to a net profit of $61 million. Importantly, digital net revenue also continued to climb and represented almost two-thirds of the company's total revenues on a non-GAAP basis. EA also noted that its trailing 12-month operating cash flow hit a record high of $964 million.

"It was a strong start to the year for Electronic Arts. We are committed to putting our players first and delivering the entertainment, innovation and creativity that our players want," said Chief Executive Officer Andrew Wilson. "Through exciting new titles and fresh content in our live services, we are well-positioned to deliver on that commitment in FY15 and beyond."

"EA delivered first quarter EPS above prior year and our guidance through a combination of revenue growth, higher gross margins and lower operating expenses," said Chief Financial Officer Blake Jorgensen. "We have gotten off to a great start and are encouraged by the trends in our industry and business."

Looking forward, EA revealed that it's delayed two key releases, but still reaffirmed its overall fiscal 2015 guidance of $4.1 billion in non-GAAP net revenue and earnings per share of $1.85. Dragon Age Inquisition now has a new launch date of November 18, while Battlefield Hardline has been moved into EA's fiscal Q4 (early calendar 2015).

EA is hoping that BioWare's newest Dragon Age will be a hot seller this holiday, and so far the buzz has been positive. Writing on the official Dragon Age blog, Mark Darrah, Executive Producer of Dragon Age: Inquisition, commented, "We appreciate the enormous support we've received from all of you to get to this point, and while this extra few weeks may not seem like a lot, I know the game you'll play will be all the better for it."

7 Comments

Alfonso Sexto Lead Tester, Ubisoft Germany

822 654 0.8
Can't help but feel it like a "Now that we are back on earnings, we don't care about making you wait another month for the game" Profit and stability goes first, yes, but still...

Posted:3 months ago

#1

Lewis Brown Snr Sourcer/Recruiter, Electronic Arts

199 56 0.3
Popular Comment
Really? So EA push a game back to make it better and its because EA wants to make you wait another month...have a think about that it makes absolutely no sense?...as a company shareholders and investors will not like EA pushing back a game. You do it to make the game better and give more time to get it to a higher standard its certainly not something anyone would do lightly.

Edited 1 times. Last edit by Lewis Brown on 24th July 2014 10:23am

Posted:3 months ago

#2

Morville O'Driscoll Blogger & Critic

1,593 1,448 0.9
Dragon Age's delay is treading a fine-line, though. Judging from early previews of both games, it's fairly obviously not going to be able to beat Witcher 3, which is currently set for end of February 2015. A November release for DA will get some Christmas period sales, but the closer they let it release to Witcher 3, the more they'll have to fight Witcher's PR. I wouldn't be entirely surprised if DA gets pushed back to late March 2015. Especially when you consider the roaring sales that Divinity: Original Sin is still doing.

Posted:3 months ago

#3

Peter Moore Chief Operating Officer, Electronic Arts

15 94 6.3
Chris is exactly right - this game is finishing brilliantly, it just needs a few extra weeks of polish time. I'm saddened that the comments above are reflective of a belief that we being deceitful in the actual rationale behind the revised date, particularly coming from industry colleagues.

Posted:3 months ago

#4

Brandon Welch Director, Talent Acquisition, Electronic Arts

1 0 0.0
Additionally, I think it says volumes that EA is willing to miss an opportunity at holiday sales with Hardline to make sure that it meets a high quality bar. Don't know many companies that would do that, but it's clear that the player experience is more important here than the almighty dollar. (or Krona!)

Posted:3 months ago

#5

Alfonso Sexto Lead Tester, Ubisoft Germany

822 654 0.8
@Lewis:
You push back a game "to make it better" maybe one month before it's release, not four to make it fall exactly on the beginign of the next year's quarter. Same goes ofr Hardline.
Before asking somebody to "have a think", see what other companies did with other games.
Also "have a think" about the fact that each person is entittlet to it's own opinions and, that if you are unable to show the minimun respect expected from a professional of the industry defeding his own company, you better keep those comment for youself.

Posted:3 months ago

#6

Lewis Brown Snr Sourcer/Recruiter, Electronic Arts

199 56 0.3
Totally respected your right to defend your position, but also think about all the people busting a gut at EA and don't be surprised if we are prepared to challenge your opinions too. You can't expect to make a statement like you did without expecting to ruffle a few feathers in exactly the way I ruffled yours.

Edited 1 times. Last edit by Lewis Brown on 29th July 2014 12:15pm

Posted:3 months ago

#7

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