Gaming News

Published on November 5th, 2020 | by gareth

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EA Reveals Strong Financial Reports

Gamers are gaming like never before an EA has had a strong financial report.

today announced preliminary financial results for its second fiscal quarter ended September 30, 2020.

“Thanks to the incredible work of our teams and everything they continue to do for players while working from home, we’re delivering more fan-favorite games, growing our leading live services, and engaging more players across more platforms than ever before,” said CEO Andrew Wilson. “Our business has grown significantly this year, and we are projecting continued expansion into FY22 and beyond.”

“We delivered a quarter well above our guidance, driven by our live services, particularly Madden and FIFA. This resulted in a new record trailing twelve-month cash flow of $2.04 billion. We are pleased to announce a new share repurchase program and also to initiate a dividend for the first time in EA history,” said COO and CFO Blake Jorgensen. “We are on track to deliver strong growth this year and expect continued growth in fiscal 2022 and in the years to come. Apex Legends is on track to become our latest billion-dollar franchise by the end of the fiscal year. All of our studios continue to execute amazingly well and have enabled us to launch an industry-leading eight games since the beginning of the fiscal year, while continuing to deliver live services content and expand onto new platforms.”

EA has posted a refreshed slide presentation and a financial model of EA’s historical results and guidance on EA’s IR website at www.ir.ea.com. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR website. News and ongoing updates regarding EA and its games are available on EA’s blog at www.ea.com/news.

Selected Operating Highlights and Metrics

  • Net bookings* for the trailing twelve months was $5.577 billion, up 8% year-over-year.
  • Launched EA SPORTS™ UFC® 4, Madden NFL 21, Rocket Arena, and Star Wars™: Squadrons during the quarter.
  • Madden NFL 21 has nearly 30% more players year-over-year.
  • Life to date, FIFA 20 has reached nearly 35 million players on console and PC.
  • EA Play now has more than 6.5 million paid subscribers.
  • During the fiscal year, EA launched more than 125 games and content packs on the Steam platform.

* Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.

Selected Financial Highlights and Metrics

  • Net cash provided by operating activities was $61 million for the quarter and a record $2.041 billion for the trailing twelve months.
  • EA announced a new $2.6 billion, two-year stock repurchase program and declared a quarterly cash dividend of $0.17 per share.

Quarterly Financial Highlights

Three Months Ended

September 30,

2020

2019

(in $ millions, except per share amounts)
Full game

282

580

Live services and other

869

768

Total net revenue

1,151

1,348

Net income

185

854*
Diluted earnings per share

0.63

2.89*
Operating cash flow

61

37

Value of shares repurchased

306

Number of shares repurchased

3.3

*Includes the impact of one-time tax benefits recognized during the fiscal quarter.

The following GAAP-based financial data and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

Three Months Ended September 30, 2020
GAAP-Based Financial Data
(in $ millions)

Statement of
Operations

Acquisition-
related
expenses

Change in
deferred net
revenue
(online-
enabled
games)

Stock-based
compensation

Total net revenue

1,151

(241

)

Cost of revenue

286

(2

)

Gross profit

865

(241

)

2

Total operating expenses

716

(6

)

(111

)

Operating income

149

6

(241

)

113

Interest and other income, net

(10

)

Income before provision for income taxes

139

6

(241

)

113

Number of shares used in computation:
Diluted

293

For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2020.

Financial Highlights for the Trailing Twelve Months

Twelve Months Ended

September 30,

2020

2019

(in $ millions)
Full game

1,686

1,726

Live services and other

3,904

3,358

Total net revenue

5,590

5,084

Net income

1,314

2,746*
Operating cash flow

2,041

1,748

Value of shares repurchased

674

1,204

Number of shares repurchased

6.5

12.9

*Includes the impact of one-time tax benefits recognized during the period.

The following GAAP-based financial data and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

<td class=”bwvertalignb bwsinglebottom bwpadl0 bwpadr0″ rowspan=”1″ colspan

Twelve Months Ended September 30, 2020
GAAP-Based Financial Data
(in $ millions)

Statement of
Operations

Acquisition-
related
expenses

Change in
deferred net
revenue
(online-
enabled
games)

Stock-based
compensation

Total net revenue

5,590

(13

)

Cost of revenue

1,351

(8

)

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About the Author

Syndicated movie & game critic, writer, author and frequent radio guest. His work has appeared in over 60 publications worldwide and he is the creator of the rising entertainment site and publication “Skewed and Reviewed”.He has three books of film, game reviews and interviews published and is a well-received and in demand speaker on the convention circuit. Gareth has appeared in movies and is a regular guest on a top-rated Seattle morning show.He has also appeared briefly in films such as “Prefountaine”, “Postal”. “Far Cry”. and others. Gareth is also an in-demand speaker at several conventions and has conducted popular panels for over two decades.



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