Electronic Arts' first-quarter performance surpasses projections, despite experiencing a 30% decline in income
Electronic Arts has reported its financial performance for the first quarter of the 2025 fiscal year. Despite declines in key areas, the company exceeded its projections and is optimistic about Q2, particularly with the recent success of EA Sports College Football 25.
Financial Overview
For the quarter ending June 30, 2024:
- Revenue: $1.66 billion, a 13% decrease from the previous year
- Net income: $280 million, a 30% decrease year-on-year
- Net bookings: $1.26 billion, down 20% from last year
Key Points
Net bookings saw a 20% decline compared to the same period the previous year, influenced by a 58% drop in full game sales. However, live services saw a relatively modest decrease of 7% compared to Q1 FY24.
During this period, EA had limited new releases, including EA Sports F1 24 and Tales of Kenzera: Zau, the latter from Surgent Studios, which did not perform well and resulted in staffing reductions at the studio. In contrast, Q1 FY24 benefitted from the releases of Star Wars: Jedi Survivor and PGA Tour, along with a boost to football titles due to the World Cup in December 2023.
According to CFO Stuard Canfield, Q1 results were better than expected, and the company aims to leverage this momentum with the launch of EA Sports College Football 25, as well as upcoming titles like Madden NFL, EA Sports FC, and Dragon Age: The Veilguard.
EA Sports College Football 25 attracted five million unique players in its first week, with an additional 500,000 playing via the EA Play trial. CEO Andrew Wilson highlighted this launch as a significant milestone for the company.
Additionally, EA Sports UFC Mobile achieved record net bookings, and the Battlefield series reached a milestone of 25 million players. The company reported that live services accounted for 75% of net bookings over the past year.
CEO Andrew Wilson stated: "EA had a strong start to FY25, surpassing net bookings guidance. Our commitment to delivering more expansive and interconnected experiences for our players is evident in the record-breaking launch of EA Sports College Football 25. We are poised for another remarkable Q2 sports season at EA."
Looking forward, EA forecasts annual net revenue between $7.1 billion and $7.5 billion, net income between $904 million and $1.1 billion, and net bookings between $7.3 billion and $7.7 billion.
