Video game

EA second-quarter adjusted sales fall short of estimates – marketscreener.com


Nov 5 (Reuters) – Electronic Arts Inc on Thursday
reported quarterly adjusted sales below Wall Street estimates,
as big-budget publishers compete to tap the lockdown-led surge
in videogame sales.
EA as well as rivals Activision Blizzard Inc and
Take-Two Interactive Software Inc have benefited from a
surge in videogame sales in the United States, as people staying
indoors due to COVID-19 have turned to videogames for
entertainment.

The company’s adjusted revenue for the second quarter ended
Sept. 30 dropped 30.7% to $910 million, missing analysts’
average estimate of $971.3 million, according to IBES data from
Refinitiv.

“If there’s anything you know, it’s clearly there’s a return
to a little more normal than what we saw in Q1 because Q1 was
off the charts,” Chief Financial Officer Blake Jorgenson told
Reuters.

The company expects holiday-quarter adjusted sales to be at
$2.35 billion, compared with estimates of $2.33 billion, betting
on robust demand for its sports titles “Madden NFL 21” and “FIFA
21”.

EA’s football title “Madden NFL 21”, which was released in
August, became the third highest selling game in September,
according to data from research firm NPD.

Earlier in the day, the company extended its multi-year
partnerships with mixed martial arts promoter Ultimate Fighting
Championship and the National Hockey League (NHL). It’s sports
division thrives on licensing deals with sports leagues that
allow exclusive use of the brand, its players and stadiums, for
the company’s games.

EA also said its board had approved a new two-year program
to repurchase up to $2.6 billion of its common stock and
declared a cash dividend of 17 cents per share.

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(Reporting by Ayanti Bera in Bengaluru;
Editing by Vinay Dwivedi)



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