EA Announce Second Quarter Report News

EA today delivered financial results for the fiscal second quarter ended September 30 2004, and unsurprisingly its increases across the spectrum for the US publishing giant.

Net revenue for the period stood at $716 million compared with $530 million for the fiscal quarter ended September 30 2003, an increase of 35% spurred on by the releases of Madden NFL 2005, The Sims 2, Burnout 3: Takedown and NCCA Football 2005 â?“ each of which reached Platinum status during the period.

Split into territories, North America saw an increase in Net Revenue of 32% to $473 million; Europe by 45% to $210 million; Asia-Pacific rose by 21% to $21 million whilst Japan bucked recent trends and saw a similar increase of 29% to $12 million.

Madden NFL 2005 has shifted over 4 million units since launch, whilst The Sims 2 and Burnout 3: Takedown have each sold over 1 million copies in Europe alone!

Net income for the period rose by 27% to $97 million, leaving diluted earnings per share at $0.31 as compared to $0.25 a year ago; whilst the trailing twelve month operating cash flow was $664 million as compared to $657 million for the same period a year ago.

As a result EAâ??s Board of Directors have authorized a share repurchase scheme of up to $750 million; confirming that this will take place through either purchasing the Companyâ??s common stock from time to time in the open market, or through privately negotiated transactions across the next 12 months.

"We enter the holidays with strong momentum in North America, Europe and Asia," said Larry Probst, Chairman and Chief Executive Officer. "EA SPORTS is having its best year ever and The Sims 2 had the strongest PC launch in EA's history. In the December quarter, the breadth and quality of our global line-up is exceptional, with eleven new releases expected to achieve platinum status."

"We are fortunate to be in a strong financial position," said Warren Jenson, Chief Financial and Administrative Officer. "We have the financial strength to invest for the long term, maintain strategic flexibility and at the same time return capital to our shareholders through our share repurchase program."

Looking forward, EA confirmed plans to build a studio in China focussed on creating games for the region, having enjoyed success at China Joy â?“ the Chinese equivalent to E3.

For the fiscal third quarter, EA predicts Net Revenue to stand between $1.4 and $1.475 billion, as compared to $1.475 billion for the prior year. For the full 2004 fiscal year, EA expects Net Revenue to be between $3.275 and $3.4 billion, compared to $2.957 billion for fiscal 2004.