Electronic Arts Q4 2014 Financials, Titanfall Sales Revealed
Electronic Arts has released its financial results for the past year and Q4 2014.
These numbers came by the way of an official report from the publisher detailing its financial results for the quarter and the past year. The report painted a picture that was slightly better than expected but still worse than the year prior. The company’s fourth quarter earnings, for instance, were $1.12 billion. This represented a 7.1 percent drop from the year prior but was also nearly 5 percent more than the company had predicted in its guidance. The company’s annual totals were a similar story, dropping more than 5 percent lower than the year prior but beating overall predictions for the year. If EA’s response is, in turn, any indicator, the results haven’t been viewed as negative.
“While navigating through a year of tremendous change in the industry, which included a challenging console transition, we were able to exceed revenue guidance, lower our operating expenses, double operating cash flows, and invest in new products and services for the future,” said EA’s CFO Blake Jorgensen. “On a non-GAAP basis, we drove higher gross margins, improving our operating profit margins to 18%.”
At the forefront of the company’s positive progress were increases in digital sales as well as a lineup of “hit” games that brought in significant revenues. Among these was, of course, Titanfall which COO Peter Moore, speaking in an investor call, said had sold 925,000 copies for Xbox One and PC during its first three weeks on the market. More would also affirm that the Xbox 360 version is “off to a great start.” EA has apparently also sighed “a new publishing agreement” that it will be using to help “bring new Titanfall experiences to players worldwide.”
In that same investor call it was revealed that full game digital sales had made up 12 to 15 percent of the company’s total game sales. EA also revealed that it will be initiating a 750 million stock buyback program using profits from the past year. On the gaming front CEO Andrew Wilson also told investors that highly anticipated Star Wars title like Star Wars: Battlefront are coming along “very, very well.” Time will have to tell how these initiatives and ongoing developments will serve the publisher in its efforts to perform better for the year to come.