Impressive fiscal 4Q16 results
On May 11, 2016, Electronic Arts (EA) announced its fiscal 4Q16 and 2016 results. Electronic Arts declared revenues of $924 million in 4Q16, easily beating analyst estimates of $886.4 million. Non-GAAP (generally accepted accounting principles) earnings per share (or EPS) totaled $0.50 in fiscal 4Q16, compared to $0.39 in fiscal 4Q15.
EA’s shares rose by 7.7% in after-market trading to $73.38, following better-than-expected earnings. The increase in revenue was mainly driven by growing digital revenues and impressive sales of Star Wars: Battlefront. In fiscal 2016, EA sold over 14 million units of the game.
Digital revenues rise 18.3% in fiscal 4Q16
Non-GAAP digital revenues accounted for 77% of total revenues and rose by 18.3% YoY (year-over-year) to $712 million in fiscal 4Q16. Revenues from Electronic Arts and other business segments fell by 27.9% to $212 million.
Revenues from full game downloads rose by 18% YoY to $134 million and EA’s revenue from mobile games also rose by 15% YoY to $173 million, driven by Star Wars: Galaxy of Heroes and Madden NFL.
EA’s revenues from advertising, subscriptions, and other segments also rose by 4% YoY to $95 million. Revenues driven by FIFA Ultimate Team extra content revenues rose by 26% to $310 million in 4Q16.
EA and Activision account for 1.2% of the Technology Select Sector SPDR ETF (XLK).