Electronic Arts Inc. reported revenue for the current quarter that was below analyst estimates as the video game publisher continues to feel the effects of an industry-wide downturn and the failure of last fall’s Battlefield game.
The game developer, known for Star Wars and sports games, said adjusted revenue for the three months ending June 30 will be $1.2 billion to $1.25 billion. Analysts had expected $1.45 billion, according to data compiled by Bloomberg. CEO Andrew Wilson said in a statement:
“With amazing games built around powerful IP, made by incredibly talented teams and outstanding engagement in our live services, FY23 should be a year of innovation and growth for Electronic Arts.”
EA has yet to release any major titles in 2022 and is still dealing with the aftermath of Battlefield 2042, which launched last November to mediocre reviews and poor reception from fans. EA acknowledged earlier this year that the game didn’t live up to expectations and “didn’t resonate with fans”.
Earlier on Monday, EA announced it was ending the lucrative licensing deal it has had for nearly three decades with FIFA, the governing body of world football. FIFA, one of the most popular video games, will be renamed to EA Sports FC starting next year, EA said, adding that it will share more information about the new franchise in July 2023. This year’s game is expected to launch in the fall. under the name FIFA 23. EA is also planning to release a new entry in its annual Madden NFL franchise.
The company is also expected to share more information soon about its upcoming Star Wars titles, such as a sequel to 2019’s popular Star Wars Jedi: Fallen Order. And shareholders are looking for the company’s next moves in the lucrative mobile market, where another new title from Battlefield is expected soon. On Monday, EA announced that it is developing a mobile game based on the popular fantasy franchise The Lord of the Rings, in partnership with Middle-Earth Enterprises.
Redwood City, Calif.-based EA is poised to become the largest US-based game developer if its planned $69 billion acquisition of Activision Blizzard Inc. is approved by next year. EA is a potential player in the current wave of industry consolidation and could be a target or a buyer in the field, such as Take-Two Interactive Software Inc., which bought mobile phone company Zynga Inc. for $11 billion. Industry watchers are keeping a close eye on Ubisoft Entertainment SA, which has been at the center of speculation about a sale.
For the fourth fiscal quarter, EA was below analysts’ expectations, with revenue of $1.75 billion, compared to the median estimate of $1.77 billion. Earnings per share, excluding some costs, were $1.46, compared to the average estimate of $1.42.
This article is a translation of the article on the website AdAge.
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