Electronic Arts published its fiscal second-quarter earnings on Tuesday, blowing Wall Street expectations out of the water with an earnings per share (EPS) figure of 73 cents compared to estimates of 50 cents.
The games publisher reported that it has delivered record high net revenue, earnings and operating cash flow. Its on-GAAP net revenue rose 17 per cent to $1.22 billion defying Wall Street estimates of $1.14 billion. Operating cash flow improved by $189 million versus the same period last year. Putting the results into perspective, EA reported a net income of 33 cents per share on revenue of $1.04 billion during the same period a year ago.
"Electronic Arts continues to put our players first, delivering new experiences, innovation and new ways to play," said chief executive Andrew Wilson in a statement. "It was an excellent second quarter, with strong new titles, deep player engagement in our live services and ongoing digital growth driving continued momentum."
Mobile game sales and digital downloads for PCs and consoles are in part the reason for the significant boost to EA's earnings, with the monthly active user count for the company's mobile offerings reported to be 155 million. EA sports games averaged over 40 million monthly active users in the quarter, up 250 per cent from a year ago, with many thanks to Madden NFL Mobile and FIFA 15 Ultimate Team Mobile.
The better than expected results lead the company to raise its forecast for the year ending in March, as it now looking forward to earnings for the year of $2.05 a share on $4.18 billion in revenue, instead of a profit of $1.85 a share and revenue of $4.1 billion it had previously expected. EA anticipates a profit of 90 cents a share on $1.28 billion of revenue for the current quarter, ahead of analysts' expectations of 85 cents and $1.29 billion respectively. It is worth noting that the guidance reflects the delayed launch of its upcoming titles Battlefield Hardline and Dragon Age Inquisition.
The better than expected earnings are clearly driven by the success of EA's flagship titles, and the company was not shy to provide a nice infographic to show just how successful the quarter has been. Gamers logged 1.9 billion hours during the second quarter of EA's fiscal year, with popular sports franchises including Madden and FIFA lifting the company's sales by 17 per cent ahead of the holiday shopping season.
Battlefield Hardline and Star Wars Battlefront on the way
Coincidentally, release dates for Battlefield Hardline and Star Wars Battlefront have been announced this week. EA revealed that Battlefield Hardline will be released on 17 March 2015 in North America, with a 19 March 2015 release date set for Europe. It also confirmed that Star Wars Battlefront will arrive sometime between October and December 2015.
