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Video game giant Electronic Arts gains nearly 4% after record earnings

Published 05/05/2015, 06:08 PM
Updated 05/05/2015, 06:13 PM
© Reuters.  Electronic Arts, the maker of FIFA '15 and Madden NFL Mobile, posted strong earnings Tuesday
EA
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Investing.com -- Shares in Electronic Arts Inc . (NASDAQ:EA) rose nearly 4% in after-hours trading, after one of the world's largest video game manufacturers posted a record fourth quarter on Tuesday to cap a strong year of earnings.

In a report released on Tuesday after the close, the California-based interactive entertainment company said it earned record net revenue, digital net revenue and operating cash flow for the fiscal year that concluded with the end of its fourth quarter on March 31, 2015.

EA attributed the earnings gains to a strong roll-out of new releases Dragon Age: Inquisition and Battlefield Hardline, as well as a spike in game sessions of its Madden NFL Mobile edition on smartphones and tablets. In addition, EA said its popular FIFA '15 soccer game remains in the Top 5 of all video game sales in Western nations.

"With a clear focus on putting our players first, FY15 was an exceptional year for Electronic Arts. We introduced award-winning games, delivered enduring entertainment in our live services, and forged deeper relationships with a growing global audience across consoles, mobile devices and PC," Electronic Arts CEO Andrew Wilson said in a statement. "EA continues to sharpen our focus and speed, and in the year ahead we will engage more players on more platforms with new experiences like Star Wars Battlefront, FIFA 16, Minions Paradise and more."

EA also announced that its Board of Directors authorized a new program to repurchase up to $1 billion of EA common stock through a two-year initiative that will run through May 31, 2017.

"Two years ago, we discussed a three-year plan to double non-GAAP operating margins to 20%," Chief Financial Officer Blake Jorgensen said in a statement. "Today, I'm happy to announce that we exceeded our goal a full year ahead of schedule. Looking forward, we anticipate continued earnings growth driven by our strong portfolio, investment in new IP, the market shift to digital, and on-going cost discipline."

Shares in EA gained 2.29 or 3.87% to 61.45 in after-hours trading.

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