Electronic Arts Raises Annual Profit Projection, Declares Dividend Amid Gaming Demand Surge Driven by Pandemic -- Earnings Re...
November 05 2020 - 4:31PM
Dow Jones News
By Maria Armental
Electronic Arts Inc. raised profit projections for the year and
declared its first dividend following better-than-expected
second-quarter results, driven by live services during the
pandemic, particularly Madden NFL and FIFA. Here's what you need to
know:
PROFIT: Net income fell to $185 million, or 63 cents a share,
from $854 million, or $2.89 a share, a year earlier. EA had
projected 21 cents a share. The year-ago results were driven by
one-time tax benefit gains.
REVENUE: Net revenue fell to $1.15 billion from $1.35 billion a
year earlier, driven by the shift of FIFA from the second quarter
to the third quarter. EA projected $1.13 billion.
OUTLOOK: EA said it now expects profit for the year that ends in
March to reach $3.15 a share, up from its earlier view of $2.97. It
backed its previous forecast of adjusted profit of $5.25 a share,
$5.63 billion in net revenue and about $5.95 billion in net
bookings.
SHARE REPURCHASE: EA's board has approved a $2.6 billion,
two-year stock repurchase program.
DIVIDEND: EA declared a dividend of 17 cents a share. The
dividend, the first for EA, is payable on Dec. 23 to stockholders
of record as of the close of business on Dec. 2.
PANDEMIC: EA officials had pointed to higher levels of
engagement and live services as people stayed home during the
pandemic. On Thursday, Chief Financial Officer Blake Jorgensen
noted the strength in the business and pointed to the capital
return policy, including the initiation of a dividend. "This is
about confidence in where we believe the business is going," he
said in an interview.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
November 05, 2020 16:16 ET (21:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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