EA beats earnings expectations but outlook falls short
[SAN FRANCISCO] US video game maker Electronic Arts (EA) on Thursday beat earnings expectations despite falling revenue, but outlook for the current quarter caused shares to sink.
Revenue of US$1.15 billion in the recently ended quarter was driven by play of titles including its Madden and Fifa franchises based on real-world professional sports, according to the California-based company.
The revenue was down 14 per cent from the same period a year earlier, but Wall Street analysts had anticipated much less.
"We delivered a quarter well above our guidance," chief operating officer Blake Jorgensen said in an earnings release.
But EA projected revenue of US$1.7 billion in the current quarter, below the US$2.3 billion forecast by Wall Street.
EA shares sank more than 7 per cent in after-market trades that followed release of the earnings figures.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Mr Jorgensen also announced that EA's battle royale-style online game Apex Legends is on track to become a billion-dollar franchise.
The number of people playing Madden NFL 21 grew nearly 30 per cent compared to this time last year, and ranks of subscribers to an online EA Play service have grown to 6.5 million, according to the company.
Video game play has boomed as people hunkered down at home because of the coronavirus pandemic seek out entertainment.
AFP
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
HCA beats first-quarter profit estimates on higher patient admissions
US FDA approves Pfizer’s gene therapy for rare bleeding disorder
EU toughens rules on Chinese fashion retailer Shein
Best World under fire from shareholders at AGM over dividends, director salaries
‘Extreme’ climate blamed for world’s worst wine harvest in 62 years
Sheng Siong Q1 net profit up 9.3% on higher revenue