Electronic Arts Inc have today announced their preliminary financial results for its third fiscal quarter which covers a period from October 1st – December 31, 2015. As a company Electronic Arts recorded a Non-GAAP quarterly revenue of 1.8 billion dollars, a Non-GAAP net income of 596 million dollars and a GAAP net loss of 45 million dollars.
Below are the full results:
Selected Operating Highlights and Metrics:
- EA are the #1 publisher on PlayStation 4 and Xbox One consoles in the Western World for calendar year 2015 based on available sources and EA estimates.
- Madden NFL 16 was the #1 sports title in the U.S. and FIFA 16 was the #1 title across all genres in Europe for calendar year 2015.
- The return of Need for Speed™ drew more than twice as many monthly active players in Q3 than the previous game.
- Players logged more than 150 million hours of gameplay across Battlefield 4™ and Battlefield™ Hardline in Q3.
- In Q3, STAR WARS™: The Old Republic grew to its highest subscriber level in nearly three years.
- Madden NFL Mobile monthly active players were up nearly 50% year-over-year in Q3.
Selected Financial Highlights:
- For the quarter, non-GAAP net revenue of $1.803 billion was above guidance of $1.775 billion. Diluted non-GAAP EPS of $1.83 was above guidance of $1.75. And operating cash flow of $889 million was a record for any quarter in EA history.
- STAR WARS™ Battlefront surpassed EA’s fiscal year guidance of 13 million units sold-in.
- Non-GAAP net revenue for EA’s FIFA, Madden NFL and Hockey Ultimate Team™ live services continue to perform well in Q3, collectively up 13% year-over-year and up 22% on a constant currency basis.
- EA repurchased 1.8 million shares in Q3 for $126 million.
- On a trailing twelve month basis, EA had non-GAAP net revenue of $4.538 billion (of which a record $2.421 billion was digital), non-GAAP net income of $982 million and operating cash flow of $1.025 billion.
- EA increased fiscal 2016 non-GAAP net revenue guidance to $4.517 billion and diluted non-GAAP EPS guidance to $3.04 per share. This is an increase from our previous guidance of $4.500 billion and $3.00, respectively.
Fourth Quarter Fiscal Year 2016 Expectations – Ending March 31, 2016
- GAAP net revenue is expected to be approximately $1.275 billion.
- Non-GAAP net revenue is expected to be approximately $875 million.
- GAAP diluted earnings per share is expected to be approximately $1.46.
- Non-GAAP diluted earnings per share is expected to be approximately $0.40.
- The Company estimates a share count of 330 million for purposes of calculating fourth quarter fiscal year 2016 GAAP diluted earnings per share, and 325 million for non-GAAP diluted earnings per share. Non-GAAP shares used for computing diluted earnings per share includes potentially dilutive equity instruments and the anti-dilutive effect of the Convertible Bond Hedge.
- Expected non-GAAP net income excludes the impact of the following items (estimate in millions) from expected GAAP net income:
Acquisition-related expenses $ 15
Amortization of debt discount and loss on conversion 5
Change in deferred net revenue (online-enabled games) (400 )
Stock-based compensation 49
Income tax adjustments (22 )
Expected Impact on Non-GAAP Net Income (net) $ (353 )
Q1 of 2016 will see both Unravel and Plants Vs Zombies Garden Warfare 2 launch for the Xbox One and PlayStation 4.