Electronic Arts Reports Mixed Financial Results for Q2 2024, Driven by Growth in American Football Franchises

Electronic Arts Inc. (EA) reported its financial results for the three and six months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. For the three months, net revenue reached $2,025 million, a 6% increase from $1,914 million in the same period of 2023. This growth was primarily driven by a $301 million rise in revenue from American football franchises, particularly from the release of EA SPORTS College Football 25. However, the six-month net revenue decreased to $3,685 million, down 4% from $3,838 million in the prior year, largely due to a decline in sales of extra content for Apex Legends and the absence of a major title release like Star Wars Jedi: Survivor.

Gross profit for the three months ended September 30, 2024, was $1,569 million, up from $1,458 million year-over-year, while gross profit for the six months decreased slightly to $2,966 million from $3,014 million. Operating income for the three months increased to $384 million, a 2% rise from $377 million, but fell for the six months to $748 million from $919 million. Net income for the three months was $294 million, down from $399 million, and for the six months, it decreased to $574 million from $801 million. Basic earnings per share (EPS) for the three months was $1.11, compared to $1.47 in the prior year.

The company’s cash and cash equivalents as of September 30, 2024, were $2,197 million, a significant decrease from $2,900 million as of March 31, 2024. Total current assets also fell to $3,972 million from $4,247 million. In terms of liabilities, total current liabilities decreased to $2,787 million from $3,090 million.

EA is undergoing a restructuring plan initiated in February 2024, aimed at aligning its portfolio with strategic priorities, with expected charges between $125 million and $165 million. As of September 30, 2024, the company incurred net charges of $119 million related to this plan. The restructuring is expected to be completed by March 31, 2025.

In addition, EA has authorized a new stock repurchase program for up to $5.0 billion, replacing a previous program, and has repurchased 2.6 million shares for $375 million during the three months ended September 30, 2024. The company continues to focus on enhancing its live services and digital offerings, which are critical to its revenue model.