EA reports $1.04B net revenue in Q4 2013, generates $104M from mobile
Gaming giant Electronic Arts today reported $1.04 billion in non-generally accepted accounting principles (GAAP) net revenue for its fourth fiscal quarter of 2013, up 6.4 percent year-over-year from 977 million in non-GAAP net revenue from Q4 2012.
Sales of $1.04 billion were within the company’s guidance of $1.025 billion to $1.125 billion. Non-GAAP diluted earnings per share (EPS) were $0.55, which was slightly below its guidance of $0.57 to $0.72, while non-GAAP loss per share was $($0.17).
EA didn’t report a non-GAAP net loss in this quarter, but expects a non-GAAP net loss of $188 million and a non-GAAP loss per share of $0.62 for Q1 2014. Non-GAAP net income for the quarter was $169 million, up from $56 million from the same quarter a year ago. Non-GAAP digital revenue for the 2013 fiscal year totaled $1.7 billion.
Overall, the company’s non-GAAP digital revenue for Q4 2013 amounted to $618 million, up from $425 million in Q4 2012. Revenue from mobile, including handhelds, contributed approximately $104 million to this total.
“We remained focused on this segment due to the significant growth in the smartphone and tablet market,” says Blake Jorgensen, chief financial officer of EA, in today’s earnings call.
The company reported a strong showing from mobile titles that contributed to its growth in mobile, including The Simpsons: Tapped Out and Real Racing 3. The Simpsons: Tapped Out generated nearly $10 million in digital net revenue in March, totaling almost $50 million since launching in August 2012. The title also reached 13 million installs for Android and peaked at 5.4 million daily active users (DAU) across both iOS and Android. Real Racing 3 generated more than 30 million downloads, and has averaged more than 2.5 million daily active users DAU since releasing in March.
EA continued its company shift from social to mobile after it recently shut down three more social titles, including Sim City Social, The Sims Social and Pet Society. EA’s earnings report for this quarter shows that four mobile games and one social games are in development, with other titles to be announced. Jorgensen said in the earnings call that EA plans to launch 15 titles on mobile platforms in the fiscal year of 2014. As for what’s in the pipeline for mobile, EA president of labels Frank Gibeau, says PopCap will release Plants vs. Zombies 2 and new title from the Bejeweled team, new mobile titles from EA Sports and more features for The Simpsons: Tapped Out and Real Racing 3.
“We are placing greater emphasis on mobile and less on social games,” Jorgensen says.
Electronic Arts non-GAAP mobile revenues from smartphones and tablets were up 6.1 percent quarter-over-quarter from $99 million to $104 million for Q4 2013, and up 21 percent year-over-year.
The Redwood City, Calif.-headquartered corporation’s total mobile revenues including handhelds was $118 million, up from $100 million at the same time last year, and down 19 percent quarter-over-quarter from $147 million.
The company’s stock closed today at $18.41 per share, up $0.12 or 0.66 percent. In after-hours trading, shares increased even further to $20 a share.