Electronic Arts [EA] Climbs 6.1% After In-Line Results and Guidance Boost
Shares of Electronic Arts (EA 82.55, +4.71) have climbed 6.1% in pre-market after the video game publisher reported in-line earnings and raised its guidance for the full year.
The company reported an in-line second-quarter loss of $0.13 per share on a 10.2% spike in revenue to $898 million.
The company released two major titles during the quarter. FIFA 17 has seen 20.0% greater engagement when compared to last year's installment while the launch of Battlefield 1 has been met with a doubling of the player base for the first week when compared with Battlefield 4, which was released in 2013. Furthermore, the company made upbeat comments about the launch of Titanfall 2, which began selling in late October.
Looking at the revenue breakdown, digital revenue made up 63.0% or $566 million of the total, as the company continues responding to an industry shift towards more internet sales at the expense of sales at physical stores. Revenue from full game downloads increased 15.0% year-over-year to $94 million while Packaged Goods and Other revenue grew 6.0% to $332 million. Extra Content revenue increased 13.0% to $240 million while Subscriptions, Advertising, and Other revenue declined 1.0% to $83 million.
Mobile revenue showed the largest year-over-year increase, growing 21.0% to $149 million. The company has benefitted from performing phones and tablets that can handle graphics-intensive content, but a visible slowdown in phone and tablet sales in recent quarters could prove to be a headwind going forward.
Looking ahead, Electronic Arts expects to generate full-year earnings of $2.69 per share, which is up from previous guidance for $2.56 per share and ahead of current market expectations.