Electronic Arts reports June quarter hit $1.29B in bookings, down 2.7%

Electronic Arts reported earnings today for the first fiscal quarter ended June 30, as ongoing operations for existing EA Sports games like 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 the analyst consensus expectations of $1.26 billion. The slight decline compared to a year ago isn’t unusual, given the pandemic’s huge effect on games last year, as more people stayed inside and played more. Now that things have loosened somewhat, games have more competition.

“EA delivered strong results in Q1 with our growing player network deeply engaged in new games and live services,” said CEO Andrew Wilson, in a statement. “Our expanding EA Sports portfolio and owned IP franchises continue to power resilience and longevity in our business. Our teams remain focused on what they do best – making amazing experiences that inspire new generations to play, watch, create, compete and connect.”

The Redwood City, California-based video game giant reported GAAP net income of $311 million, or $1.11 a share, on revenues of $1.767 billion, compared with net income of $204 million, or 71 cents a share, on revenue of $1.551 billion a year ago.

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

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

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

In after-hours trading, the stock is up at $130 a share, up 1%. Bookings reflect actual cash coming into the company, while revenues don’t include numbers that are yet to be realized, such as virtual goods that have been purchased but not used yet in game.

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

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

For 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 in the quarter was up nearly 40% from a year earlier in weekly and daily average players.

FIFA Mobile also delivered its highest net bookings quarter in history, with record daily active users, up 10% from the last quarter.

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 those results are not yet built into the projections for the future.

For the upcoming second fiscal quarter ending September 30, EA 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 cents to 86 cents. Net bookings are expected to be $1.725 billion to $1.775 billion.

For the fiscal year ending March 31, 2023, EA expects revenues to hit $7.6 billion to $7.8 billion. Net income is expected to be $793 million to $815 million. Diluted earnings pre share are expected to be $2.79 to $2.87. Operating cash flow is expected to be $1.6 billion to $1.65 billion.

EA had a public divorce with FIFA over the major soccer license. But EA is moving forward for its next game without the FIFA name and it is using EA Sports FC instead. It also announced today it has teamed up with LaLiga in a multi-year partnership.