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EA Games up post-market on better-than-expected revenue

22:02, 3 November 2021

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Players at an EA Games conference
Players at an EA Games conference - Photo: Shutterstock

Shares of video game maker Electronic Arts (EA) were up more than 3% by 5:30 pm EDT (UTC 21:30) on Wednesday after the company released its fiscal Q2 2022 earnings and showed better-than-expected revenue generated by the company’s new titles.

The shares have seen very little movement so far in 2021 but are up nearly 12% over the last 12 months.

Earnings details

According to EA’s earnings statement, the company brought in total net revenues of $1.8bn compared to the $1.15bn it earned at this time last year.

Net income was $294m and diluted EPS were reported at $1.02 compared to the company’s Q2 2021 income of $185m and EPS of $0.63.

Three analysts surveyed by MarketBeat anticipated the company would report revenues of $1.74bn and EPS of $0.27.

Net bookings for the trailing 12 months increased 27% to $7.07bn while more than 100 million players engaged with EA content through the first six months of 2021.

EA repurchased 2.3 million shares during the quarter, bringing its 12-month total up to 9.5 million shares at a value of $1.03bn.

The company also announced a quarterly cash dividend of $0.17 per share which is payable on 22 December.

EA’s CEO Andrew Wilson said the company’s performance means there it will be able to deliver “more amazing experiences this holiday season.”

New titles

Etsy’s CFO, Blake Jorgensen, credited some of the company’s new EA Sports titles and its Apex Legends series for its strong quarterly performance.

Apex Legends seasons 9 and 10 respectively set records for their number of users while Star Wars: Galaxy of Heroes eclipsed the 100 million player mark for its lifetime.

Outlook

Looking ahead to Q3 and the remainder of fiscal year 2022, EA anticipates bringing in net revenues of $6.925bn with a net income of $583m.

Operational cash flow is estimated to be $1.95bn and diluted EPS are expected to be $2.03.

Overall net bookings are expected to be $7.625bn.

Read more: Electronic Arts acquires Playdemic for £1.4bn

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