Electronic Arts barely beats Q4 guidance, Battlefield reveal confirmed for next month

Recent articles

Electronic art (NASDAQ: EA) have their results for the quarter ended March 31, 2021, with the company managing to just exceed their expectations for the quarter and full fiscal year 2021. Net sales for Q4 2021 were $ 1.35 billion, about 10 percent lower than the same quarter last year. Net income was 76 million, better than the $ 19 million loss EA predicted, but significantly lower than the $ 418 million made in the same period last year. Low income in the fourth quarter was partly, but not entirely, due to a hefty tax charge of $ 165 million.

For the full fiscal year 2021, sales were $ 5.63 billion, an increase of approximately 10 percent compared to FY2020. Income for FY2021 was $ 837, a long way from $ 3 billion in 2020, though taxes again came into play as EA got a big one-time credit in 2020. For Q4 2021, earnings per share were $ 0.26, well below the $ 1.05 analysts expect. Unsurprisingly, this has led to some volatility in EA shares in after-hours trading.

Apex Legends rises to the top of the mountain

Perhaps the most interesting aspect of EA’s Q4 earnings was the company’s emphasis on the free-to-play battle royale game Apex Legends in their report. While they usually brag about their FIFA and Madden Ultimate Team numbers in the first place, COO Blade Jorgensen really praised Apex Legends’ success in the company’s Q4 earnings release …

EA delivered a strong quarter, driven by live services and the extraordinary performance of Apex Legends. Apex has grown steadily over the past year, driven by the game team and the content they provide. Looking ahead, the momentum in our existing live services provides a solid foundation for FY22.

There’s certainly plenty of reason to be happy with Apex Legends – the game has crossed the 100 million player mark, with more than 12 million weekly active players engaged in the game’s Season 9 update. The brand should only grow in FY 2022 as Respawn rolls out new game-changing content and prepares to launch Apex Legends Mobile. Of course, EA’s traditional sports activities are still doing well, with FIFA 21 over 25 million players and Ultimate Team players up 16 percent from the year before. 74 percent of EA’s net bookings now come from live services and various in-game purchases.

A great battlefield year ahead

FY 2021 was a solid, if somewhat uninspired, 12 months for Electronic Arts, especially given the big business boost COVID-19 generated for competitors like Activision Blizzard. That said, EA is forecasting big things for FY 2022, including $ 6.8 billion in revenue ($ 7.3 in total net bookings when factoring in deferred live service revenue). This brighter outlook is mostly due to an overall stronger set of releases, including the Mass Effect Legendary Edition remaster, the Codemasters-developed F1 2021, and most importantly, a new entry in the company’s blockbuster Battlefield FPS franchise. You can check out the full release schedule for FY 2022 below.

During their earnings call, EA largely reiterated what we already know about the new Battlefield, although they added that the game will finally be revealed next month (sorry for those hoping for a trailer today). Fortunately, credible leaks have already revealed some possible details about the game. Most notably, Battlefield is rumored to be returning to a near future and will feature some sort of new Battle Royale mode. Coupled with rumors that Activision Blizzard is struggling to get this year’s Call of Duty together, it looks like this will be Battlefield’s year to shine. EA CEO Andrew Wilson is certainly excited about what FY 2022 could bring …

Our teams have done an incredible job over the past year to deliver great experiences during a very challenging time for everyone around the world. We are now accelerating in FY22, driven by the expansion of our blockbuster franchises to more platforms and regions, a deep pipeline of new content and recent acquisitions that will be catalysts for further growth.

Electronic Arts has built a reliable live service revenue-generating machine for themselves, but if they really want to compete with the likes of Activision Blizzard, they need to replicate the kind of integration the company has pushed between their main Call of Duty games and Warzone battle against generous. Maybe that’s coming, but for now, EA remains a reliable bet.

Check all Gaming News here: Gaming Ideology

Source

Leave a Reply