Electronic Arts reports that June quarter reached $1.29 million in bookings, down 2.7%

Electronic Arts today reported earnings for the fiscal first quarter ended June 30, as ongoing operations of existing EA Sports games such as FIFA helped it through a quarter with smaller releases.

Net bookings for the quarter were $1.299 billion, down 2.7% from $1.336 billion a year ago and above analysts’ consensus expectations of $1.26 billion. The slight decline compared to a year ago is not unusual, given the huge effect of the pandemic on gaming last year, as more people stayed inside and played more. Now that things have loosened up a bit, games have more competition.

“EA delivered strong results in the first quarter with our growing player network deeply engaged with new games and live services,” CEO Andrew Wilson said in a statement. “Our expanding EA Sports portfolio and proprietary IP franchises continue to power the resilience and longevity of our business. Our teams remain focused on what they do best: making incredible experiences that inspire new generations to play, watch , create, compete and connect.”

In an analyst call, Wilson credited EA Sports and racing games as a center for growth, showing that sports fandom is becoming more interactive, as he said “gaming is the social media of the future.” He said sales of F1 22 are up by double digits so far since launch.

“Sports is the ultimate ‘evergreen’ form of entertainment, and our new multimedia partnership with LaLiga perfectly illustrates how we continue to innovate at the forefront of sports, media and interactive content.”

The Redwood City, Calif.-based video game giant reported GAAP net income of $311 million, or $1.11 per share, on revenue of $1.767 billion, compared with net income of $204 million, or 71 cents per share, on annual revenue of $1.551 billion. does.

“Our FIFA franchise and the successful launch of F1 drove our net booking performance, delivering another quarter ahead of expectations,” CFO Chris Suh said in a statement. “Looking forward, our focus on execution and disciplined investment in our broad portfolio of games and live services will drive our long-term growth.”

Analysts had estimated that EA would report earnings per share of 28 cents on revenue of $1.26 billion.

For the fiscal second quarter ending Sept. 30, EA is expected to report earnings per share of $1.49 on revenue of $1.87 billion.

In after-hours trading, the stock rose to $130 a share, up 1%. Reserves reflect actual cash coming into the business, while revenue does not include numbers that have not yet been realized, such as virtual goods that have been purchased but not yet used in-game.

Analysts had estimated that EA would report earnings per share of 28 cents on revenue of $1.26 billion. Michael Pachter, an analyst at Wedbush Securities, said EA did not raise its estimates for the full fiscal year, although it did better than expected in the fiscal first quarter. This means that EA may be more pessimistic about the coming quarters. Investors probably won’t like that conservatism, Pachter said.

For the fiscal second quarter ending Sept. 30, EA is expected to report earnings per share of $1.49 on revenue of $1.87 billion.

In the trailing 12 months, EA reported net bookings of $7.478 billion, up 22% from the prior year.

Game user numbers

EA said its player network has grown to nearly 600 million active accounts. It also noted that FIFA Ultimate Team engagement during the quarter was up nearly 40% year-over-year in average weekly and daily players. FIFA Online 4 reached a new high in engagement and FIFA Mobile delivered its biggest quarter of net bookings ever.

FIFA Mobile also delivered its highest ever quarter of net bookings, with record daily active users, up 10% from last quarter. In an analyst call, COO Laura Miele said the company is optimistic about the role of mobile games in EA’s future.

Wilson said there was a bit of a slowdown in macro mobile gaming. But he noted that EA’s mobile business is doing well within that trend. He said the market is still working through Apple’s changes to IDFA and noted that the world is on vacation now that people are traveling again and that may have some impact in terms of competition for the era of players.

“While the macro perspective remains fluid, all of us at Electronic Arts are focused on the
things we can control,” Wilson said. “Even amid market uncertainty, more people than ever are turning to gaming as their primary choice for entertainment. That’s what they love to do more than anything else, and it’s how they want to connect and share experiences with people from all over the world.”

Miele said EA was happy with the results so far of Apex Legends Mobile, which launched eight weeks ago.

A look ahead

EA has been on an acquisition spree this year with the acquisitions of Codemasters, Glu, Metalhead and the pending Playdemic deal. Some of these results have not yet been incorporated into future projections.

For the upcoming fiscal second quarter ending Sept. 30, EA’s forecast revenue would be $1.85 billion to $1.9 billion, with net income expected to be $220 million to $242 million. Earnings per share are expected to be 78 to 86 cents. Net reserves are expected to be between $1.725 billion and $1.775 billion.

For the fiscal year ending March 31, 2023, EA expects revenue to come in between $7.6 billion and $7.8 billion. Net income is expected to be $793 million to $815 million. Diluted earnings per share are expected to be $2.79 to $2.87. Operating cash flow is expected to be between $1.6 billion and $1.65 billion. EA has about 13,000 employees.

Miele said she was optimistic about the development of the next Skate game and was pleased with how the community had offered feedback. Wilson declined to comment on rumors and speculation that Wilson was actively looking to sell the company.

EA had a public divorce with FIFA over the main soccer license. But EA is pushing ahead with its next game without the FIFA name and using EA Sports FC instead. It also announced today that it has joined forces with LaLiga in a multi-year partnership.

When asked if we have sent the end of game delays due to the remote conditions related to the pandemic, Miele said that more people are returning to the office and that executives can travel to visit the offices of new He said having teams together at the beginning and end of production processes is important, but noted that the teams are adapting.

“We think we’re in our new groove and will evolve over time,” he said.