Electronic Arts at Smith Barney Citigroup New York Leisure Conference - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

LIZ OSNER, ANALYST, SMITH BARNEY: I'd like to thank all of you for being here today and introduce myself for those of you who don't know me. My name is Liz Osner (ph). I am the Leisure Analyst at Smith Barney. I'm very excited to welcome you to our annual leisure day.

We've got a great lineup this morning with the world's largest cruise operators, leading videogame publishers and Walt Disney in the morning. Our keynote speaker for lunch is George Buckley, the Chairman and CEO of Brunswick Corp. He has generously phoned (ph) us from the Miami Boat Show to share with us his latest update. And then this afternoon, we will be hearing from Mattel and Leapfrog, both of whom are here in New York for Toy Fair, as well as Block Buster and Six Flags.

Today's format includes breakout sessions for those companies that are indicated on your schedules and those sessions are located in conference room N which is right down the hall. And with that, we're going to kick it off with Electronic Arts. Warren Jenson is going to make a few comments and then we're going to kick off into a discussion format.

We're delighted to have Warren here. He is the CFO and CAO of the Company. Warren has been with EA since July 2002 following 10 years as the CFO at Amazon, Delta and National Broadcasting Company. EA is the number one leading videogame publisher with a broad portfolio of franchised titles that provide a built-in customer base and systems results.

I'm going to turn it over to Warren briefly and then we will move into a discussion format followed by some time for your Q&A and then a video of one of EA's most anticipated holiday releases.

WARREN JENSON, CFO, ELECTRONICS ARTS: First of all, good morning everybody. It's my pleasure to be here. Liz and I are really going to do this on a pretty informal basis with essentially Q&A for the entire round as I am sure there are a lot of questions that a lot of you would like to ask. As Liz mentioned what we thought we would do is I'll just say a couple of quick things, open it up to her questions and yours and then as this chart may indicate, would like to give you a clip of what to expect with the Godfather coming out this fall. As hopefully we'll have a real hit on our hands if we can do it right.

What I'd like to say in the beginning is really just use two sides to talk about our long-term growth story. We feel that when you're looking at Electronic Arts and you think about what we offer is really the following and I think this is the growth pieces. Number one is we are a pure digital entertainment pure play. And with that we have very strong natural growth drivers, really driven by creative execution on the top of ever improving technology. We're also a Company that we believe has really strong built-in strengths in terms of our reliability and sustainability, 27 Platinum hits. And then finally, we also have a track record of success.

Lastly, I think if there were one chart I would use in any presentation regardless of anything else and we've used it for here for the last couple of years it's this next one, and that is really thinking about Moore's Law. Effectively Moore's Law for us is not a cost play; Moore's Law for us is a revenue play. And while for most large media and entertainment companies digital is a cost play, for us it is absolutely about our top-line. And what technology is really doing for us in the long term is its opening up several avenues for long-term growth.

The first thing and most importantly is ever expanding quality. When you think about the growth in our segment it's not because of great marketing or purely technology, it's about the reason why the industry continues to grow is the product just continues to get better. I think you'll see a next evolution as you take a look at Godfather at the end of this presentation.

On top of quality what technology is doing is opening up new avenues for distribution and accordingly new revenue streams. When we think of online, when the think of mobility, I think it's really fascinating that we find ourselves in this year with the first real -- two platforms that are essentially targeted in mobile platforms to adults 18 to 34. That has never been the case and we've never had that in this industry or in entertainment before. That is the phenomenon which we believe over the long term is going to continue will significantly impact our business very, very positively. The expansion of online.

And then finally I would say globalization. While we today are clearly advantaged versus most of the major medias in terms of having roughly 50 percent of our business outside the …