Video game publisher Electronic Arts raises annual sales forecast

Electronic Arts (EA)

Electronic Arts Inc has raised its annual adjusted sales forecast, betting on its soccer franchise “FIFA” and the upcoming launch of warfare title “Battlefield 2042”.

The videogame maker said it expected full-year adjusted sales of $7.63 billion, compared with $7.40 billion previously. Analysts expected $7.59 billion, according to Refinitiv data.

The California-based company also reported a more than two-fold jump in quarterly revenue that beat expectations, sending its shares 2.8% higher in extended trading.

The gaming boom fuelled by pandemic-related lockdowns has remained intact despite this year’s economic reopening, with data from analytics firm NPD showing US consumer spending on video games rose 2% in the second quarter to $14 billion.

A clutch of strong titles including “Apex Legends,” “Star Wars: Galaxy of Heroes” and “Madden NFL 22” has helped EA capitalize on the demand surge.

The company has also strengthened its mobile gaming portfolio by spending billions of dollars on deals for companies like Glu Mobile, UK-based Codemasters and Playdemic Ltd.

Its net income rose to $294 million, or $1.02 per share, from $185 million, 63 cents per share, a year earlier.

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Rival Take-Two Interactive Software Inc also raised its annual adjusted sales outlook to between $3.3 billion and $3.4 billion, citing strong demand for its key franchises “Grand Theft Auto V” and “Red Dead Redemption 2.”

The team at Platform Executive hope you have enjoyed the ‘Video game publisher Electronic Arts raises annual sales forecast‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Tiyashi Datta and Nilanjana Basu in Bengaluru. Editing by Aditya Soni.

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