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EA makes $1.286 billion in Fiscal Q2'19

Games juggernaut EA rakes in strong revenues on back of digital earnings.

@DeekeTweak
Published Mon, Nov 5 2018 5:32 PM CST   |   Updated Mon, Oct 19 2020 8:18 PM CDT

Electronic Arts strengthens its foothold as a titan of the industry and rakes in more than $1 billion in its second quarter.

EA makes .286 billion in Fiscal Q2'19 894 | TweakTown.com
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In its recently announced Fiscal Year Q2'19 earnings, EA saw strong growth in key segments. The company generated $1.286 billion in total net revenues in the 3 month period ended September 30, 2018, up a strong 34% year-over-year and $16 million above EA's Q2'19 guidance. Operating income, which is gross profit minus operating expenses, sits at $258 million for the quarter, down 14% year-over-year.

"EA's net revenue was $1.286 billion, above our guidance by $16 million. Operating expenses were $610 million, $64 million lower than our guidance driven by compensation and related expenses and some phasing of marketing expenses," said EA CFO Blake Jorgensen in the earnings call.

"GAAP operating income was $258 million compared to an operating loss of $41 million a year ago and resulting in an earnings per share of $0.83, $0.35 better than our guidance. Underlying profit was much stronger than we had expected driven by increased sales, better gross margin and lower operating expenses."

In trailing 12-months, which includes FY2018's last two quarters combined with FY2019's first two, EA earned $5.165 billion in net revenues. Remember EA spends quite a bit to make its cash, though: in TTM (trailing twelve-months) EA made $3.798 in gross profit after subtracting $1.367 billion in costs. EA also spent over $2.5 billion on operating costs, such as games development, live service hosting, and other administrative fees.

As a result, operating income for the current TTM period sits at $1.290 billion.

EA makes $1.286 billion in Fiscal Q2'19 893 | TweakTown.com

For the total Fiscal Year 2019 period (ending March 31, 2019) the company expects to make $5.150 billion in total net revenues, of which nearly 74%, or $3.80 billion, will be from digital.

Fiscal Year 2019 Expectations - Ending March 31, 2019

Financial metrics:

  • Net revenue is expected to be approximately $5.150 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be
  • approximately $270 million.
  • Mobile platform fees are expected to be approximately $(220) million.
  • Net income is expected to be approximately $962 million.
  • Diluted earnings per share is expected to be approximately $3.11.
  • Operating cash flow is expected to be approximately $1.650 billion.
  • The Company estimates a share count of 309 million for purposes of calculating fiscal
  • year 2019 diluted earnings per share.

Operational metric:

  • Net bookings is expected to be approximately $5.200 billion.
NEWS SOURCE:s22.q4cdn.com

Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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