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 firstname.lastname@example.org
(END) Dow Jones Newswires