EA reports unexpected numbers in Profits and Game Downloads

11 January, 2017 | By Aapt Dubey
ea sports

The Giant Video Game publisher, Electronic Arts (EA) has put up some surprising figures. EA recently posted quarterly revenue more than the estimated Analyst average value.

EA is popularly known for its Fifa and Battlefield games. It currently rides on the success of its recent products. It's 'Star Wars Battlefront' game and some other launches are already a success. The company also reported an unexpectedly higher number of downloads of its games.

EA also released three smaller games recently. The games are 'Plants vs. Zombies: Garden Warfare 2 ', a martial arts game 'EA Sports UFC 2' and its indie game 'Unravel'. It is also releasing its much awaited latest Fifa game four days before the end of the September Quarter.

The CFO said that the company stops the accounts of its digital business five days before the end of the quarter. He says that the firm must have earned about $75 million from the digital sales of the latest Fifa game. This revenue would get accounted in the third quarter.

The digital business of the company generates higher margins than the physical disc sales. The digital business of the firm is to provide downloadable digital copies of the game.

At the initial stage, the shares of the company raised by 2.5 percent in extended trading. After that, they traded down 1.5 percent owing to the current revenue below the analyst average.

The company estimated $1.08 billion revenue for the quarter. It also considered the delayed revenue from online-based games. Analysts, on the other hand, expected about $1.11 billion as revenue from EA.

The first quarter was an off or slow season for the firm. But the huge digital sales of the Fifa Ultimate Team on Console and Star Wars: Galaxy of Heroes projected the revenues up in Q1.

The EA adjusted revenue dropped by 1.6 percent and amounted $682 million in three months ending on July 30. EA earned 7 cents per share. Analysts expected an average loss of 2 cents per share and revenue of 650.7 million. The digital business adjusted sales rose up to $568 million by 6.8 percent. It was 83.34 percent of total revenue.

EA from next quarter plans to stop reporting the non-GAAP measures that adjust the delayed revenue. EA has been doing this since 2008 to abide by the stronger guidelines by the US Securities and Exchange Commission. But now it plans otherwise.

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