Electronic Arts reports record-breaking quarter driven by sports game titles
In its financial statement for the second quarter of fiscal year 2025, Electronic Arts (EA) reported a surge in net bookings, largely fueled by its EA Sports division. The outcomes surpassed the top end of its forecast, prompting an upward adjustment to the company's full-year predictions.
Financial Overview
For the quarter ending September 30, 2024, the financial results were:
- Revenue: $2.05 billion, reflecting an 8% increase compared to the previous year
- Net Income: $294 million, a 26% year-over-year decline
- Net Bookings: $2.08 billion, marking a 15% increase year-over-year
Key Developments
Although EA exceeded its revenue and booking targets, net income saw a reduction by 26%, amounting to $294 million for the period.
The EA Sports FC franchise celebrated gains in its second year with EA Sports FC 25 launching in September, achieving over 130% growth in its global player base when including FC Mobile and FC Online.
EA College Football 25 emerged as the top-selling high-definition game in North America. During the quarter, the company also had three of the top ten selling games, namely EA Sports FC 25, EA College Football 25, and Madden NFL 25.
The Madden NFL series anticipated surpassing $1 billion in net bookings for the fiscal year, with a notable 140% increase in hours played during Q2 compared to the previous year.
The Sims 4 experienced heightened player engagement, leading to greater than expected net bookings, coinciding with the release of its 16th expansion, Lovestruck.
In contrast, Apex Legends did not meet booking forecasts due to its Season 22 Battle Pass launch. In a conference call, CEO Andrew Wilson opposed developing an 'Apex 2.0'.
In July, Respawn modified the Apex Legends Battle Pass pricing to real-money only, a decision that was reversed due to player objections.
Looking ahead, EA adjusted its annual forecasts upward, projecting net revenue between $7.4 billion and $7.7 billion, net income ranging from $1.02 billion to $1.15 billion, and net bookings between $7.5 billion and $7.8 billion.
CFO Stuart Canfield remarked: "After the first half of fiscal 2025, we carry strong momentum, motivating us to enhance our yearly guidance, and strengthening our confidence in surpassing market growth in net bookings through fiscal 2027. As we achieve more scale in revenue, we're foreseeing significant margin growth from FY25 through FY27, even as we invest for future growth."
EA Sports FC 25 hit the top of Circana's US sales charts for September, setting new revenue records for soccer games.