During its history, which extends over 30 years (the company was founded in 1982), Electronic Arts has been able to become a world leader in the sphere of interactive entertainment software. The key focus of the company is videogames, additional content, network services for gaming systems which are connected to the internet, PCs, mobile phones and tablets. The company has a decent revenue diversification: North America accounts for 43.4% of all sales, whilst the remaining revenue is distributed across other countries.
Improving financial indicators with a low debt level. For the past year the company’s return on equity was 35.76%, with asset returns at 17.52%. Net profit to revenue was an impressive 26%. Total debt as a percentage of assets was just 16.31%. Aggregate debt to EBITDA was 1.05, whilst net debt in relation to EBITDA was negative (-2.99) due to a high liquidity reserve.
The company strategy is focused on an increase in revenue share from the rapidly developing segment of mobile gaming (the current revenue share from this is 11%).
Some popular videogames are expected to be released by the company in the coming time and they should bring a high revenue stream to the company: the fifth in the series of “Battlefield”, the second “Titanfall” and “Mass Effect Andromeda”.
Investment period ends: 16/06/2017
Expected yield is calculated according to 94% capital protection and the price of the base asset at expiry, equal to 116 USD.
The Electronic Arts share price has broken through the 50-, 100- and 200 daily moving averages upwards and has left the Ichimoku cloud upwards. The share price remains in an upward trend.