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EA Finishes Fiscal Year 2015 With Increased Revenue And Profits
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.
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