EA Q1: Packaged goods slump while digital revenue soars

EA has reported its financial results for the period between April 1st and June 30th, announcing a massive increase in digital revenue.

While total earnings were down slightly at $949m (a $6m YOY difference), digital net revenue reached $482m during the quarter – a major increase over Q1 2013’s $342m.

EA had a solid quarter driven by continued digital growth and disciplined cost management,” EA executive chairman Larry Probst said on a call to investors.

We are also executing on a clear set of goals for leadership on mobile, PC, current and next generation consoles.”

Not surprisingly, packaged goods came in flatter than the year prior, bringing in $452m versus $592m during the same period in 2013.

Probst attributed the strong digital sales to Battlefield online offerings as well as the publisher’s mobile games division.

$177m of the digital figure was contributed through free-to-play and DLC on PC and consoles, while full game downloads on PC pitched in $37m – an increase of 12 per cent thanks to Battlefield and The Sims franchises.

Star Wars: The Old Republic saw an increase in subscription and free-to-play numbers versus last year as well, and The Simpsons: Tapped Out recorded its highest revenue quarter in the timeframe since launching in August 2012.

EA was also the top publisher in the iOS App Store, according to the report. The company’s mobile and handheld digital revenue was $103m (non-GAAP), a 30 per cent increase compared to the same period last year.

"EA delivered first quarter EPS above our guidance through a combination of revenue growth, phasing of expenses, and cost control," said EA CFO Blake Jorgensen. "We are reaffirming our annual non-GAAP guidance of $4 billion net revenue and $1.20 earnings per share."

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