Electronic Arts Earnings Show Digital is the Only Way
EA's stronger Q4 hides an industry-wide problem
Electronic Arts' fourth quarter (the quarter ended March 31st 2013) results are out and they are strong. However, they still reflect a downturn in overall revenue year-on-year as the mainstream industry contends with tired IP and consumers who see pre-owned and mobile game snacking as the best ways to go.
Basically, total net revenue calculated using generally accepted accounting practices (i.e. GAAP) was $1,209 million compared against $1,368 million for the same quarter in 2012. GAAP calculated net income was $323 million against $400 million in the same quarter in 2012. The real fascination we think, however, sits in Digital versus traditional game delivery:
In terms of GAAP calculations, Digital Net Revenue was $453m, versus $419m for Q4 2012. Quite a bit up. So, let's compare that to traditionally retailed games.
Publishing Packaged Goods and Other Net Revenue $730m versus $926m shows that digital delivery of product including DLC and microtransactions, is where the bucks are increasingly coming for EA.
Still, while revenues for EA are down over the last 12 months income is up, with the 12 months to March 31st for 2013 and 2012 looking like this:
GAAP net revenues of $3,797m in 2013 vs $4,143m in 2012, with net incomes of $98m in 2013 vs $76m in 2012.
In its highlights, EA was keen to point out that GAAP Mobile Net Revenue including mobiles were $108m for 2013 vs $88m in 2012, again highlighting digital.
Source: EA
Basically, total net revenue calculated using generally accepted accounting practices (i.e. GAAP) was $1,209 million compared against $1,368 million for the same quarter in 2012. GAAP calculated net income was $323 million against $400 million in the same quarter in 2012. The real fascination we think, however, sits in Digital versus traditional game delivery:
In terms of GAAP calculations, Digital Net Revenue was $453m, versus $419m for Q4 2012. Quite a bit up. So, let's compare that to traditionally retailed games.
Publishing Packaged Goods and Other Net Revenue $730m versus $926m shows that digital delivery of product including DLC and microtransactions, is where the bucks are increasingly coming for EA.
Still, while revenues for EA are down over the last 12 months income is up, with the 12 months to March 31st for 2013 and 2012 looking like this:
GAAP net revenues of $3,797m in 2013 vs $4,143m in 2012, with net incomes of $98m in 2013 vs $76m in 2012.
In its highlights, EA was keen to point out that GAAP Mobile Net Revenue including mobiles were $108m for 2013 vs $88m in 2012, again highlighting digital.
Source: EA
Companies:
Electronic Arts
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