Driven by strong player engagement and increased sales of video games to home gamers, Electronic Arts on Thursday raised its full-year forecast for adjusted revenue, which exceeded quarterly expectations.
EA is popular for games such as “Star Wars Jedi: Fallen Order” and “Battlefield”, raising its annual adjusted revenue forecast from approximately US$5.55 billion (approximately Rs 41,534 crore) to approximately US$5.95 billion (Approximately Rs 442.5 billion), exceeding analyst expectations. According to data from Refinitiv IBES, the amount is US$5.61 billion (approximately Rs 41,984 crore).
EA obtains greater sales through on-site services, including in-game purchases and subscription-based online service EA Access.
Chief Financial Officer Blake Jorgensen told Reuters that real-time service revenue increased by US$416 million (approximately Rs 31.12 crore) over the same period last year, mainly driven by popular life simulation video games FIFA and Sims.
FIFA’s new players more than doubled this quarter. Data from Twitchtracker.com shows that from April to June, FIFA 20’s game viewing time averaged about 42,000 hours, an increase of about 53% over the previous three months.
As people play more games at home and buy virtual game content across platforms, video game sales benefit to a large extent. Sales revenue in June increased by 26% to 1.2 billion US dollars (approximately 89.8 billion rupees), the highest expenditure since June. According to data from research firm NPD
However, EA earlier postponed the release of its annual football championship FIFA 21 to the beginning of the third quarter, that is, October, which brought the adjusted revenue forecast for the quarter to approximately US$875 million (approximately Rs 65.49 billion). According to Wall Street’s estimate of US$1.29 billion (approximately Rs 9655 crore).
Jorgenson said the company decided to extend the development time of FIFA and Madden NFL 21 by another two weeks, which caused a delay.
EA’s stock has risen 29% this year and rose slightly after the market.
Adjusted revenue for the first quarter ended June 30 increased to US$1.39 billion (approximately Rs 10,403 crore), exceeding analysts’ expectations of US$1.05 billion (approximately Rs 7,856 crore).
© Thomson Reuters 2020
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