Electronic Arts has had its biggest net bookings yet in the company’s history as the video gaming giant and publisher closed another successful three months ended December 31. The company’s total revenue reached $1.79 billion, up 7% and net bookings ended at $2.58 billion, up 7% as well. Nevertheless, this missed the expected $2.577 billion Wall Street had projected. The company also took a hit across its net income for the quarter, reporting only $66 million, down 69%.
Creating the Basis for Future Growth
The third quarter has been the biggest in the company’s history, said EA CFO Blakes Jorgensen who commented on the company’s results. Jorgensen felt confident in the future of his company’s success, expecting double-digit growth for 2022, with stronger cash flow and a strong foundation for the business’s future expansion.
This quarter marked the first three-month period which factored in the acquisition of important assets, including Codemasters, Playdemic, and Glu Mobile. One of the best performing divisions for the company was EA Sports, which showed a 10% year-over-year gain in FY2021 as of the third quarter. FIFA 22 was the top-selling game in the Western hemisphere while Madden NFL 22 was the top-selling sports game in the United States. Madden NFL 22 was also in the top three best-selling games in the country overall for 2021.
Electronic Arts’ bread-and-butter products have been the backbone of its success, with Apex Legends reporting a robust monthly increase in its active player base. The monthly user base during the period increased 30% at the end of the quarter, with player spending similarly going up by 20%. Revenue in the fourth quarter is forecast at $1.76 billion or up 31%. Net income is expected to reach another $130 million, or up 71%.
Take the Good and the Bad
However, EA has not addressed the performance of Battlefield 2042, its latest installment in the popular series, which has been struggling. The community has received the game poorly and asked for numerous improvements, which EA said would “take some time.” This has not improved things. Meanwhile, the company expects its full-year forecast to reach $6,93 billion in revenue while net income is expected to be $694 million, down 17%.
Meanwhile, EA’s stock lost value with NASDAQ:EA is trading at $134.71 on January 31 to $129.94 on February 2. The increase in consumer spending, the great performance of its flagship titles, and the overall player base of over 540 million accounts should put EA in a position where its stock would continue to improve in the following weeks after the dust of the missed earnings and revenue results settles.