Shulou(Shulou.com)11/24 Report--

Beijing time on August 2 morning news, Electronic Arts Group (EA) today announced the company's fiscal year 2024 first quarter results. According to the report, EA's total net revenue in the first quarter was $1.924 billion (currently about 13.814 billion yuan), compared with $1.767 billion in the same period last year, an increase of 9%. Excluding general accounting principles, net bookings (net bookings) were $1.578 billion, an increase of 21% from $1.299 billion in the same period last year. Net profit was $402 million (currently about 2.886 billion yuan), up 29% from $311 million a year earlier.

Diluted earnings per share in EA's first quarter exceeded Wall Street analysts' expectations, but net bookings fell short of expectations and the company's outlook for the second quarter and full year of fiscal 2024 fell short of expectations, causing its shares to fall more than 3 per cent in after-hours trading.

Summary of results: for the quarter ended June 30, EA's net profit was $402 million, up 29% from $311 million a year earlier, and diluted earnings per share were $1.47, compared with $1.11 a year earlier. The performance beat analysts' expectations. On average, 21 analysts expected EA's first-quarter earnings per share to reach $1.02, according to data provided by Yahoo Finance.

EA's total net revenue in the first quarter was $1.924 billion, compared with $1.767 billion a year earlier, up 9 per cent from a year earlier.

In terms of revenue composition, EA's revenue from the full games business was $443 million in the first quarter, compared with $341 million a year earlier, up 30 per cent, while revenue from live streaming services and other businesses was $1.481 billion, compared with $1.426 billion a year earlier, an increase of 4 per cent. Within the full game business, revenue from the full game download business was $301 million, up 27 per cent from $237 million in the same period last year, while revenue from the packaged goods business was $142 million, up 37 per cent from $104 million in the same period last year.

By platform, EA's revenue from the game console business was $1.167 billion in the first quarter, up 12 per cent from $1.042 billion a year earlier; revenue from PC and other businesses was $451 million, up 12 per cent from $402 million a year earlier; and revenue from mobile was $306 million, down 5 per cent from $323 million a year earlier.

Not in accordance with us general accounting standards, net bookings in the first quarter was $1.578 billion, up 21 per cent from $1.299 billion in the same period last year, and 25 per cent year-on-year, excluding exchange rate changes, slightly below analysts' expectations. On average, 18 analysts expected EA's net bookings to reach $1.59 billion in the first quarter, according to data provided by Yahoo Finance.

EA's first-quarter gross profit was $1.556 billion, compared with $1.453 billion a year earlier. EA's first-quarter revenue cost was $368 million, compared with $314 million a year earlier. EA's first-quarter operating profit was $542 million, compared with $441 million a year earlier.

EA's total operating expenses were $1.014 billion in the first quarter, compared with $1.012 billion a year earlier. Of this total, R & D expenditure was $596 million, compared with $572 million in the same period last year; marketing and sales expenditure was $229 million, compared with $234 million in the same period last year; and general and administrative expenditure was $163 million, compared with $167 million in the same period last year. Amortization expenses for intangible assets were $25 million, compared with $39 million for the same period last year, and restructuring expenses for the same period last year were $1 million, compared with no such charges for the same period last year.

EA's cash flow from business operations in the first quarter was $359 million, compared with $78 million in net cash for business operations in the same period last year. Over the past 12 months, EA's net cash from business operations was $1.987 billion, compared with $1.964 billion in the same period last year.

In the first quarter, EA bought back 2.6 million shares, with a total of $359 million; in the past 12 months, EA bought a total of 1050 million shares, with a total of $1.3 billion.

EA has announced a cash dividend of $0.19 per share, which will be paid on September 20, 2024 to shareholders of record as of the end of business hours on August 30, 2024.

Second quarter performance outlook: EA expects its net revenue to reach between $1.825 billion and $1.925 billion in the second quarter of fiscal 2024 (currently about 13.103 billion to 13.822 billion yuan, of which the change in deferred net revenue is expected to be about-$125 million). Net profit is expected to reach between $197m and $243m Diluted earnings per share are expected to be between 72 cents and 89 cents per share, below analysts' expectations, while net bookings are expected to be between $1.7 billion and $1.8 billion, below analysts' expectations. EA also expects revenue costs of between $430 million and $450 million and operating expenses of between $1.11 billion and $1.12 billion in the second quarter of fiscal 2024.

On average, 19 analysts expected EA's second-quarter net bookings to reach $1.81 billion, while 21 analysts expected EA's second-quarter earnings per share to reach $1.49, according to Yahoo Finance.

Full-year performance outlook: EA expects net revenue of between $7.3 billion and $7.7 billion in fiscal 2024 (currently about 52.414 billion to 55.286 billion yuan, of which deferred net revenue is expected to remain unchanged); net profit is expected to be between $947 million and $1,087 million; diluted earnings per share are expected to be between $3.42 and $3.92, below analysts' expectations Operating cash flow is expected to be between $1.7 billion and $1.85 billion; net bookings are expected to be between $7.3 billion and $7.7 billion, with an average of $7.5 billion, below analysts' expectations. EA also expects revenue costs of between $1.67 billion and $1.75 billion and operating expenses of between $4.248 billion and $4.368 billion in fiscal 2024.

According to data provided by Yahoo Finance, 25 analysts had on average expected EA's net bookings to reach $7.61 billion in fiscal 2024, while 26 analysts had expected EA to earn $6.87 per share in fiscal 2024.

Share price movements: on the day, EA shares fell 23 cents, or 0.17 percent, to close at $136.12 in regular trading. In after-hours trading as of 05:10 EDT (05:10 Beijing time on the 2nd), EA shares fell another $4.82, or 3.54 per cent, to $131.30. Over the past 52 weeks, EA has priced as high as $140.30 and as low as $108.53.

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