EA Sees Growth in Q1 Thanks to FIFA, Jedi: Survivor
Electronic Arts saw revenues and profits increase in the company’s fiscal first quarter thanks to strong performances from “FIFA 19” and “Jedi: Fallen Order.”
The video game giant reported a quarterly net revenue of $1.44 billion, up 3 percent year-over-year, while its gross profit surged 6 percent to $968 million. That’s thanks to increases in digital revenue, which was up 12 percent; and what was called “Live Services” – an array of in-game add-on and microtransaction-style purchases – that saw a 17 percent jump year-over-year.
On the console front, “FIFA 19” reached sales targets, while “Jedi: Fallen Order” sold better than expected in quarter one. The company’s “Apex Legends” battle royale saw more than 70 million players since its launch in February.
On the mobile front, “The Sims Mobile” and “Harry Potter: Wizards Unite” saw steady growth in their respective userbases. The takeaway is that EA’s big business is still anchored in its traditional console and PC games, while mobile offerings are set to be a growth driver in the years to come.
Overall, EA’s performance in the fiscal first quarter was encouraging. It reported a 25 percent jump in operating cash flow to $647 million, and a 3 percent annualized jump in earnings per share to $1.64.
Going forward, EA has planned “Star Wars: Hollywood” and “Plants Vs. Zombies 3” for its current fiscal year. Judging by this quarter’s performance, the company is primed to book more big wins in the months to come.