Electronic Arts Inc. (ERTS, Financial) filed Quarterly Report for the period ended 2012-06-30.
Electronic Arts Inc. has a market cap of $13.01 billion; its shares were traded at around $0 .
Net income for the three months ended June 30, 2012 was $201 million as compared to $221 million for the three months ended June 30, 2011. Diluted earnings per share for the three months ended June 30, 2012 was $0.63 as compared to a diluted earnings per share of $0.66 for the three months ended June 30, 2011. Net income decreased for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011 primarily as a result of (1) a $25 million increase in personnel-related expenses due primarily to an 11 percent increase in headcount, (2) a $9 million decrease in gross profit due to a 4 percent decrease in net revenue, and (3) a $9 million increase in restructuring and other costs. These decreases in net income were partially offset by a $22 million decrease in acquisition-related contingent consideration charges.
Net revenue in North America was $450 million, or 47 percent of total net revenue for the three months ended June 30, 2012, compared to $501 million, or 50 percent of total net revenue for the three months ended June 30, 2011, a decrease of $51 million, or 10 percent. Net revenue in North America decreased primarily due to the absence of a primary distribution title release during the three months ended June 30, 2012. Net revenue in Europe was $435 million, or 46 percent of total net revenue during the three months ended June 30, 2012, compared to $438 million, or 44 percent of total net revenue during the three months ended June 30, 2011, a decrease of $3 million, or less than 1 percent. Net revenue in Asia was $70 million, or 7 percent of total net revenue for the three months ended June 30, 2012, compared to $60 million, or 6 percent of total net revenue for the three months ended June 30, 2011, an increase of $10 million, or 17 percent. Net revenue in Asia increased primarily due to increased sales in our FIFA and Battlefield franchises partially offset by the absence of a primary distribution title release during the three months ended June 30, 2012. Additionally, the value of the U.S. dollar relative to foreign currencies contributed to an decrease of total reported net revenue of approximately $5 million (primarily the Euro), or 1 percent of total net revenue.
For the three months ended June 30, 2012, digital Net Revenue before Deferral was $324 million, an increase of $115 million, or 55 percent, as compared to the three months ended June 30, 2011. This increase was driven by a $184 million increase in subscriptions primarily from the Star Wars: The Old Republic, as well as The Sims and Bejeweled franchises. This increase was offset by a $69 million decrease in sales partially from the Dragon Age, Crysis and Need for Speed franchises. Digital Net Revenue before Deferral for the three months ended June 30, 2012 excludes $37 million of Battlefield 3 Premium subscriptions which are deferred and are expected to be recognized in the fourth quarter of fiscal year 2013.
Investing Activities. Cash used in investing activities decreased $24 million during the three months ended June 30, 2012 as compared to the three months ended June 30, 2011 primarily driven by a $25 million decrease in cash used for acquisitions due to two acquisitions during the three months ended June 30, 2011 as compared to no acquisitions during the three months ended June 30, 2012. Separately, we received $128 million of proceeds from the maturities and sales of short-term investments during the current period as compared to $83 million received during the three months ended June 30, 2011. Additionally, we purchased $137 million of short-term investments during the current period as compared to $90 million purchased during the three months ended June 30, 2011.
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Electronic Arts Inc. has a market cap of $13.01 billion; its shares were traded at around $0 .
Highlight of Business Operations:
Total net revenue for the three months ended June 30, 2012 was $955 million, a decrease of $44 million, or 4 percent, as compared to the three months ended June 30, 2011. At June 30, 2012, deferred net revenue associated with sales of online-enabled packaged goods and digital content decreased by $464 million as compared to March 31, 2012, directly increasing the amount of reported net revenue during the three months ended June 30, 2012. At June 30, 2011, deferred net revenue associated with sales of online-enabled packaged goods and digital content decreased by $475 million as compared to March 31, 2011, directly increasing the amount of reported net revenue during the three months ended June 30, 2011. Without this $11 million change in deferred net revenue, reported net revenue would have decreased by approximately $33 million, or 6 percent, during the three months ended June 30, 2012. This decrease was primarily the result of lower revenue from distribution products during the three months ended June 30, 2012 as compared to the three months ended June 30, 2011. Net revenue for the three months ended June 30, 2012 was driven by Battlefield 3, FIFA 2012, and Mass Effect 3.Net income for the three months ended June 30, 2012 was $201 million as compared to $221 million for the three months ended June 30, 2011. Diluted earnings per share for the three months ended June 30, 2012 was $0.63 as compared to a diluted earnings per share of $0.66 for the three months ended June 30, 2011. Net income decreased for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011 primarily as a result of (1) a $25 million increase in personnel-related expenses due primarily to an 11 percent increase in headcount, (2) a $9 million decrease in gross profit due to a 4 percent decrease in net revenue, and (3) a $9 million increase in restructuring and other costs. These decreases in net income were partially offset by a $22 million decrease in acquisition-related contingent consideration charges.
Net revenue in North America was $450 million, or 47 percent of total net revenue for the three months ended June 30, 2012, compared to $501 million, or 50 percent of total net revenue for the three months ended June 30, 2011, a decrease of $51 million, or 10 percent. Net revenue in North America decreased primarily due to the absence of a primary distribution title release during the three months ended June 30, 2012. Net revenue in Europe was $435 million, or 46 percent of total net revenue during the three months ended June 30, 2012, compared to $438 million, or 44 percent of total net revenue during the three months ended June 30, 2011, a decrease of $3 million, or less than 1 percent. Net revenue in Asia was $70 million, or 7 percent of total net revenue for the three months ended June 30, 2012, compared to $60 million, or 6 percent of total net revenue for the three months ended June 30, 2011, an increase of $10 million, or 17 percent. Net revenue in Asia increased primarily due to increased sales in our FIFA and Battlefield franchises partially offset by the absence of a primary distribution title release during the three months ended June 30, 2012. Additionally, the value of the U.S. dollar relative to foreign currencies contributed to an decrease of total reported net revenue of approximately $5 million (primarily the Euro), or 1 percent of total net revenue.
For the three months ended June 30, 2012, digital Net Revenue before Deferral was $324 million, an increase of $115 million, or 55 percent, as compared to the three months ended June 30, 2011. This increase was driven by a $184 million increase in subscriptions primarily from the Star Wars: The Old Republic, as well as The Sims and Bejeweled franchises. This increase was offset by a $69 million decrease in sales partially from the Dragon Age, Crysis and Need for Speed franchises. Digital Net Revenue before Deferral for the three months ended June 30, 2012 excludes $37 million of Battlefield 3 Premium subscriptions which are deferred and are expected to be recognized in the fourth quarter of fiscal year 2013.
Investing Activities. Cash used in investing activities decreased $24 million during the three months ended June 30, 2012 as compared to the three months ended June 30, 2011 primarily driven by a $25 million decrease in cash used for acquisitions due to two acquisitions during the three months ended June 30, 2011 as compared to no acquisitions during the three months ended June 30, 2012. Separately, we received $128 million of proceeds from the maturities and sales of short-term investments during the current period as compared to $83 million received during the three months ended June 30, 2011. Additionally, we purchased $137 million of short-term investments during the current period as compared to $90 million purchased during the three months ended June 30, 2011.
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