EA holds earnings call, talks progress and future development

EA holds earnings call, talks progress and future development

We recently discussed Microsoft’s progress over the course of 2016 following the company’s annual earnings call with shareholders. You can read about how Xbox and Xbox Live balanced each other out for a net growth for 2016 here. Today, however, we have another company discussing its progress from 2016 as well as plans looking to the future, and that company is EA. Courtesy of video games analyst Daniel Ahmad on Twitter as well as EA’s official shareholder documents, we have some of the highlights from the call.

First let’s discuss some of the results from 2016. In the third quarter of fiscal year 2017, EA had an overall growth in both EA Access and EA Origin Access subscriptions. EA’s subscriptions span both PC and console hardware, so these numbers make sense with new iterations of both Sony’s and Microsoft’s gaming hardware released during Q3 of FY2017.

Net revenue for the quarter, according to EA’s shareholder documents, was $1.149 billion. Of that, EA states that 60%, $685 million, was from digital transactions. If company shares are your interest, EA “repurchased 1.5 million share in Q3 for $127 million.” The $1.149 billion is an increase from $1.070 billion the previous year for the same period, with the total digital net revenue rising to 60% from $569 million, up from 53% of Q3 net revenue last year. EA also reports that digital net sales rise 18% year-over-year. Digital net sales accounted for $2.861 billion “for the trailing-twelve-month period” and that represented 60% of total net sales, up that 18% we mentioned. While financials are obviously important to a company like EA and its investors, fans are always eager to hear how their favorite games fared, which we also found out in the investor documents.

EA reported that FIFA 17 was the best-selling console title in the world in 2016,” and the company also said that over “10 million fans have played ‘The Journey’, the new single-player mode in FIFA 17.” Along with the world’s fascination with futbol, gamers world-wide seemed fascinated with the sci-fi universe of Star Wars as well, with Q3 yielding a rise in per-day playtime of Star Wars: Galaxy of Heroes to 155 minutes average per-player gameplay time. Not all players were satisfied with the stars, it seemed, as Battlefield 1 was “our biggest Battlefield launch ever” said EA in their documents with Battlefield 1 having a “playerbase more than 50% larger than Battlefield 4 in its comparable launch quarter” which is no surprise given new possible players, but is impressive nonetheless regarding playerbase. EA also took time during their conference call to discuss future games, and you can read our more in-depth coverage of that here.

A brief summary of what we know that EA is working on is a new Star Wars Battlefront coming Holiday 2017, a new Bioware IP, a new entry into the Need for Speed franchise, as well as a few changes to existing franchises to come in future installations of FIFA, NHL, and UFC. Again, our fuller coverage of EA’s comments regarding upcoming titles can be found here, but from what’s just above, 2017 looks to be a big year for EA.

Source: EA Investor Relations

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