Electronic Arts Reports Q4 FY17 and Full Year FY17 Financial Results

Stock Repurchase Program

EA has announced a new program to repurchase up to $1.2 billion of EA’s common stock. This new stock repurchase program expires on May 31, 2019.

Under the program, EA may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. EA is not obligated to repurchase any specific number of shares under the program and the repurchase program may be modified, suspended or discontinued at any time.

Business Outlook as of May 9, 2017

The following forward-looking statements reflect expectations as of May 9, 2017. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA’s annual and quarterly SEC filings.

Fiscal Year 2018 Expectations – Ending March 31, 2018

Financial metrics:

  • Net revenue is expected to be approximately $5.075 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $25 million.
  • Net income is expected to be approximately $1.125 billion.
  • Diluted earnings per share is expected to be approximately $3.57.
  • Operating cash flow, reflecting the recently adopted accounting standard related to stock-based compensation discussed below, is expected to be approximately $1.575 billion.
  • The Company estimates a share count of 315 million for purposes of calculating fiscal year 2018 diluted earnings per share.

Operational metric:

  • Net sales is expected to be approximately $5.100 billion.

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 21% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

 
Twelve Months Ending March 31, 2018
  GAAP-Based Financial Data

GAAP
Guidance

Acquisition-
related
expenses

 

Change in
deferred net
revenue
(online-
enabled
games)

 

Stock-based
compensation

($ in millions)
 
Digital net revenue $ 3,295 - 80 -
Packaged goods & other net revenue     1,780   -     (55 )   -  
Total net revenue     5,075   -     25     -  
Cost of revenue 1,276 - - (1 )
Operating expense 2,420 (6 ) - (239 )
Income before provision for income taxes 1,364 6 25 240
Net income $ 1,125
Diluted shares 315
 

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