Electronic Arts 2005 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2005 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 168

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

reduced net revenue by $177 million for the year ended March 31, 2004 as compared to the year ended
March 31, 2003.
Europe
For Ñscal 2004, net revenue in Europe increased by 34.3 percent as compared to Ñscal 2003. We estimate
foreign exchange rates (primarily the Euro and the British pound sterling) strengthened reported European
net revenue by approximately $136 million or 15 percent for the year ended March 31, 2004. From a franchise
perspective, the net revenue increase was primarily driven by higher sales of products released during the year
ended March 31, 2004 in the following eleven franchises: Need for Speed, The Sims, FIFA Soccer, Lord of
the Rings, Medal of Honor, Final Fantasy, SSX, Football Manager, Freedom Fighters, Tiger Woods/PGA
TOUR and Rugby. Increased sales in these franchises resulted in an increase in net revenue of $373 million
for the year ended March 31, 2004 as compared to the year ended March 31, 2003. The increase was partially
oÅset by (1) a decrease in our Harry Potter franchise, as the Ñscal 2004 title, Harry Potter: Quidditch World
Cup, had no associated movie release, while our Ñscal 2003 product, Harry Potter and the Chamber of Secrets,
was released in conjunction with the blockbuster movie of the same title, and (2) an expected decrease in
sales of our World Cup franchise due to strong sales in the year ended March 31, 2003 in conjunction with the
World Cup event and no similar event in the year ended March 31, 2004. Together, the two items noted
above, reduced net revenue by $92 million for the year ended March 31, 2004 as compared to the year ended
March 31, 2003.
Asia PaciÑc
For Ñscal 2004, net revenue from sales in our Asia PaciÑc region remained Öat as compared to Ñscal 2003.
Although there were net revenue increases from our Need for Speed, The Sims and other franchises, these
increases were oÅset by declines in the sales of products in our Harry Potter, World Cup and Final Fantasy
franchises. We estimate foreign exchange rates strengthened reported Asia PaciÑc net revenue by approxi-
mately $21 million or 12.4 percent, for the year ended March 31, 2004. Excluding the eÅect of foreign
exchange rates, we estimate that Asia PaciÑc net revenue decreased by approximately $21 million or
12.6 percent, for the year ended March 31, 2004.
34