Electronic Arts 2006 Annual Report Download - page 120

Comparison of Fiscal 2005 to Fiscal 2004
Net Revenue
From a geographical perspective, our total net revenue for the Ñscal years ended March 31, 2005 and 2004
was as follows (in millions):
Year Ended March 31, %
2005 2004 Increase Change
North America ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,665 53% $1,610 54% $ 55 3%
Europe ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,284 41% 1,180 40% 104 9%
Asia ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 180 6% 167 6% 13 8%
International ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,464 47% 1,347 46% 117 9%
Total Net RevenueÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,129 100% $2,957 100% $172 6%
North America
For Ñscal 2005, net revenue in North America increased by 3 percent as compared to Ñscal 2004. From a
franchise perspective, the net revenue increase was primarily due to higher sales of products in our Need
for Speed franchise. The net revenue increase was also driven by sales of titles in our Fight Night and
Burnout franchises, neither of which had corresponding titles released in Ñscal 2004. Together, these items
resulted in a net revenue increase of $180 million during the Ñscal year ended March 31, 2005 as
compared to the Ñscal year ended March 31, 2004. This increase was partially oÅset by lower sales of
products in our Medal of Honor, SSX
TM
and Lord of the Rings franchises, which reduced net revenue by
$135 million in the Ñscal year ended March 31, 2005 as compared to the Ñscal year ended March 31,
2004. As part of this overall increase in net revenue, we beneÑted from the launch of the Nintendo DS
and Sony PSP in November 2004 and March 2005, respectively.
Europe
For Ñscal 2005, net revenue in Europe increased by 9 percent as compared to Ñscal 2004. We estimate
foreign exchange rates (primarily the Euro and the British pound sterling) strengthened reported European
net revenue by approximately $86 million, or 7 percent, for the Ñscal year ended March 31, 2005.
Excluding the eÅect of foreign exchange rates, we estimate that European net revenue increased by
approximately $18 million, or 2 percent, for the year ended March 31, 2005. From a franchise perspective,
the net revenue increase was primarily due to (1) higher sales of products in our Need for Speed and The
Sims franchises, (2) sales of products in our Burnout franchise which did not have a corresponding title
release in Ñscal 2004 and (3) sales of UEFA Euro 2004, which was released during the three months
ended June 30, 2004 in conjunction with the UEFA Euro 2004 football tournament held in Europe.
Together, these items resulted in a net revenue increase of $241 million during the Ñscal year ended
March 31, 2005 as compared to the Ñscal year ended March 31, 2004. This increase was partially oÅset by
lower sales of products in our Medal of Honor, Final Fantasy, SSX and Lord of the Rings franchises,
which reduced net revenue by $143 million in the Ñscal year ended March 31, 2005 as compared to the
Ñscal year ended March 31, 2004.
Asia
For Ñscal 2005, net revenue from sales in Asia increased by 8 percent as compared to Ñscal 2004. The
increase in net revenue was driven primarily by higher sales of products in our Need for Speed franchise
and sales of products in our Burnout franchise, which did not have a corresponding title release in Ñscal
2004, partially oÅset by declines in our Medal of Honor franchise. We estimate foreign exchange rates
strengthened reported Asia net revenue by approximately $9 million, or 5 percent, for the Ñscal year ended
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