Electronic Arts has posted its financial statement for Q2 2019, confirming record digital net bookings of $3.883 billion, up 8 per cent year-over-year (YoY) and representing 78 per cent of total net bookings.
Net cash provided by operating activities was $37 million for the quarter – $1.748 billion for the trailing twelve months – despite the company repurchasing 3.3 million shares for $306 million during the quarter, bringing the total to 12.9 million shares for $1.204 billion also during the trailing twelve months.
During the period, EA completed an internal transfer of unspecified intellectual property rights “to its Swiss subsidiary, where EA’s international business is headquartered”, and detailed a decision by the Ninth Circuit Court of Appeals in Altera Corp. v. Commissioner that required EA to record a tax accrual “regarding stock-based compensation”.
As Switzerland also changed income tax rates, “EA recognised $1.080 billion, or $3.61 of earnings per share, of this income tax benefit during the three months ended June 30, 2019 and $625 million, or $2.11 of earnings per share, during the three months ended September 30, 2019”.
EA further added that its new battle royale, Apex Legends, has had 70 million players to date, and The Sims 4 has seen its monthly average players increase by more than 40 per cent year-over-year. Its sports games also continue to flourish, with FIFA boosting its Ultimate Team unique players by 22 per cent YoY, and Madden Ultimate Team unique players increasing by 19 per cent.
“It was an excellent second quarter for Electronic Arts. Our new EA Sports titles are thrilling core fans and bringing in new players, and our ongoing live services are growing with deeply-engaged communities,” said CEO Andrew Wilson. “With new games like Star Wars Jedi: Fallen Order, Need for Speed, Plants vs. Zombies and more great content across our top franchises, we’re set to deliver a lot of fun and excitement to players this holiday season, and continue our momentum in this fiscal year.”
“The strong results this quarter illustrate the power of our live services and our core franchises. Strength in Ultimate Team, The Sims 4 and FIFA Online drove live services performance above our expectations,” added COO and CFO Blake Jorgensen. “Looking ahead, we are doubling down on live services combined with our core franchises. We’re investing in games that people play for longer and engage with much more deeply. This focus will continue to drive growth and profitability for the company through the remainder of this year and beyond.”