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EA Finishes Fiscal Year 2015 With Increased Revenue And Profits

by Mike Futter on May 05, 2015 at 10:24 AM

EA has announced its financial performance for the fiscal year ending March 31, 2015. The company exceeded its revenue and profits from the last fiscal year, with sales up nearly $1 billion (GAAP).

Net revenue was $4.5 billion in fiscal year 2015, compared to $3.6 billion during the last completed fiscal year. Net income increased from $8 million to $875 million.

The company announced plans to repurchase $1 billion worth of common stock before March 31, 2017. Stock repurchases are typically seen as a sign of strength, as the board is signaling to investors that it sees its own company as a strong investment. EA also says that it has accomplished its two-year goal of bring non-GAAP operating margins to 20 percent a full year early.

In the final quarter of the year, EA saw continuation of an ongoing industry trend. Digital revenues are up and boxed product revenues have declined. 

Year-over-year, EA saw an increase of $123 million from $491 million in Q4 of fiscal year 2014 to $614 million in Q4 of this year. Packaged good dropped from $632 million last year to $571 million this year, a decrease of $61 million. 

EA projects approximately level revenues in the new fiscal year. However, the publisher projects a strong increase in earnings per share from $1.19 to $1.90 (GAAP), likely fueled in part by stock re-purchase.

As we head into E3, we know that EA’s lineup for the coming months includes major sports titles, Star Wars Battlefront, Need for Speed, Mirror’s Edge, a new Plants vs. Zombies console game, and DLC for Battlefield Hardline. We’ll have more from EA’s earnings call shortly.

[Source: EA]

 

Our Take
Mirror’s Edge and Plants vs. Zombies showing up for first calendar quarter 2016 is a nice surprise. Here’s hoping those stay on track. This was a strong year for EA, and with Battlefront on the horizon, the company has a lot of reason to be happy (and hopeful) for FY 2016.