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EA's digital revenues outpace brick-and-mortar sales

Electronic Arts has announced its preliminary financial results from the fiscal quarter ending in June, reporting "solid" performance from digital which for the first time has beat out packaged sales.
Electronic Arts has announced its preliminary financial results [PDF] from the fiscal quarter ending on June 30th, reporting "solid" performance propped up by a robust increase in digital net revenue. EA reported a total GAAP net revenue of $949 million U.S. for the quarter, over a guidance of $875 million. A further breakdown shows that the primary driving force for revenues was digital sales, bringing in $482 million versus a combined $467 million for published and distributed packaged goods. Digital growth was strong overall, with a reported 17 percent increase year-on-year (last year's GAAP net revenue for digital was $342 million, versus packaged's $613 million), as digital sales made up 76 percent of EA's quarterly revenue. This marks the first time that EA's digital has outstripped brick-and-mortar retail in terms of GAAP net revenue. GAAP net income for the quarter came in at $222 million U.S., up from $201 million in the same period last year. EA currently projects its net revenue for the year to come in at $3.5 billion -- a projection lower than the $3.8 billion from last year that EA reported in May, reflecting a certain tightening of belts, as transitioning chairman Larry Probst put it in May's earnings call. Chief drivers for digital revenue in the quarter included The Simpsons: Tapped Out, which EA reports has recorded its highest revenue quarter since launching in August of last year, and Real Racing 3 for iOS, which EA reports has seen more than 45 million downloads and an average of 2 million daily active users since its launch in March. Investors were generally pleased with today's financial news, with share prices rising in after-hours trading.

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