EA’s Q1 Financial Call: Successful Titles Fuel Positive Outlook For Remainder of the Year

EA’s first Quarter Financial Report has arrived and it shows some serious numbers for the gaming giant. The company has been putting their umbrella studios to work this past year, and it’s thanks to this that they’ve had a much better start than they anticipated. Major new titles and online services were a huge factor here, bringing some new players as well as keeping a lot of current ones satiated. Video game statistician Daniel Ahmad broke it down in his Twitter thread, and it shows that EA is ready to push forward with some key franchises.

As you can see in the breakdown, EA’s proprietary studios have been keeping the company going forward in the ever changing video game market. Mass Effect Legendary Edition was far and above beyond what they expected, Battlefield 2042 is one of the most anticipated titles of 2021, and the most intriguing part is that they’re likely going to have Respawn Entertainment make an additional title in the Star Wars Jedi: Fallen Order series. Apex Legends also had a huge hand in this, being one of their most popular live-service titles.

For the three months of the quarter, EA posted a net revenue boost of 6%, increasing the overall intake to $1.55 billion. However, they also revealed that their bookings, or total economic value, slipped 4%, making it a loss of $1.34 billion. This was mostly due to the world wide effects of the COVID-19 Pandemic, which is still hurting numerous companies and impacting their overall worth. Their year-to-year net income was also down, a 44% drop from the previous year.

Despite these statistical issues, EA is still very optimistic for the remainder of the fiscal year, so much so that they actually increased their overall outlook. They’ve now pushed the expected net revenue to $6.85 billion, as well as increasing the net bookings to $7.4 billion. Lastly, the overall net income target for the entire year was raised from $390 million to $456 million, a staggering increase. These numbers will more than likely fluctuate as time goes on, especially whenever they fully show off the next Mass Effect and Dragon Age. 

Alex Levine: I like to write about video games, movies, tv shows, and other types of creatively imaginative alleyways and avenues. Currently assessing how long it will take to complete a new book.
Related Post