Electronic Arts 2004 Annual Report Download - page 50

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Comparison of Fiscal 2003 to Fiscal 2002
Net Revenue
From a geographical perspective, our net revenue for the Ñscal years ended March 31, 2003 and 2002 was as
follows (in thousands):
Year Ended March 31, Increase/ %
2003 2002 (Decrease) Change
North America ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,435,718 $1,093,244 $342,474 31.3%
Europe ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 878,904 519,458 359,446 69.2%
Asia PaciÑc ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 87,569 53,376 34,193 64.1%
Japan ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 80,053 58,597 21,456 36.6%
International ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,046,526 631,431 415,095 65.7%
Consolidated Net Revenue ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,482,244 $1,724,675 $757,569 43.9%
North America
For Ñscal 2003, net revenue in North America increased by 31.3 percent as compared to Ñscal 2002. From a
franchise perspective, the net revenue increase was primarily driven by sales of products released during the
year ended March 31, 2003 in the following nine franchises: Medal of Honor, Lord of the Rings, Kingdom
Hearts, The Sims, Need for Speed, Harry Potter, NCAA Football, Bond and Tiger Woods/PGA TOUR.
Increased sales in these franchises resulted in increased net revenue of $451.1 million for the year ended
March 31, 2003 as compared to the year ended March 31, 2002. The increase was oÅset by decreases in net
revenue in our Final Fantasy, SSX and NBA Street franchises as none of these franchises had products
released during Ñscal 2003. Together, decreased sales in these franchises reduced net revenue by
$108.1 million for the year ended March 31, 2003 as compared to the year ended March 31, 2002.
Europe
For Ñscal 2003, net revenue in Europe increased by 69.2 percent as compared to Ñscal 2002. From a franchise
perspective, the net revenue increase was primarily driven by sales of products released during the year ended
March 31, 2003 in the following eleven franchises: Lord of the Rings, Medal of Honor, The Sims, FIFA
Soccer, Bond, World Cup, Harry Potter, Need for Speed, BattleÑeld, SimCity
TM
and Tiger Woods/PGA
TOUR. Increased sales in these franchises resulted in increased net revenue of $345.6 million for the year
ended March 31, 2003 as compared to the year ended March 31, 2002.
Asia PaciÑc
For Ñscal 2003, net revenue from sales in the Asia PaciÑc region, excluding Japan, increased by 64.1 percent
compared to the year ended March 31, 2002. Our net revenue from sales of products on the PlayStation 2 and
Xbox platforms increased by $15.7 and $6.3 million, respectively, for the year ended March 31, 2003
primarily due to the higher installed base on both platforms and the fact that 20 Xbox titles were available in
the Asia PaciÑc region in 2003 as compared to three in 2002. Sales of co-publishing and distribution titles
increased $11.1 million primarily due to sales of Final Fantasy X and BattleÑeld 1942 in Ñscal 2003.
Japan
For Ñscal 2003, net revenue from sales in Japan increased by 36.6 percent compared to Ñscal 2002. The
increase was due primarily to the higher PlayStation 2 installed base and strong sales of PlayStation 2 titles,
most notably Medal of Honor Frontline
TM
, 2002 FIFA World Cup and Project FIFA World Cup which
generated an additional $15.7 million in net revenue in Ñscal 2003. We also had an increase in revenues from
co-publishing and distribution products of $11.0 million due in large part to sales of Final Fantasy 11. These
increases were oÅset by a decrease in PlayStation revenue of $5.7 million.
35