Electronic Arts Posts Higher Sales, Profit #Electronic #Arts #Posts #Higher #Sales #Profit Welcome to Lopoid
While Electronic Arts Inc. backed its financial outlook for the year, its guidance for the fiscal second quarter was below Wall Street projections.
Jon Cherry/Bloomberg News
Electronic Arts Inc.
posted higher sales and profit in its recently ended quarter as two of its videogame series lifted results, even as consumers face high inflation and fears of a recession.
The Redwood City, Calif.-based videogame company said that sales from its FIFA soccer and F1 racing franchises helped grow revenue more than 14% in its fiscal first quarter.
“We saw continued strong engagement from our player community and that underpins everything,” Chief Financial Officer
said in an interview.
Mr. Suh said FIFA did well both online and on mobile, and net bookings for F1, which launched on the last day of the quarter, also exceeded expectations.
For the quarter ended June 30, Electronic Arts posted net income of $311 million, up from $204 million a year earlier. Analysts had projected net income of $101.6 million.
Revenue came in at $1.77 billion, ahead of expectations for $1.26 billion.
While the company backed its financial outlook for the year, its guidance for the fiscal second quarter was below Wall Street projections. Electronic Arts said it expects revenue between $1.85 billion and $1.90 billion and net income between $220 million and $242 million in the current quarter. Analysts polled by FactSet expected $1.84 billion in revenue and $402.7 million in net income.
The guidance reflects company projections that more revenue is expected to come in later in the fiscal year, Mr. Suh said.
The results come after rival videogame company
Activision Blizzard Inc.
on Monday reported a drop in sales and earnings for its second quarter from a year ago. Activision is in the process of being sold to
for $75 billion.
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