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Electronic Arts (EA) is a global leader in digital interactive entertainment, specializing in the development, marketing, publishing, and delivery of games, content, and services for game consoles, PCs, mobile phones, and tablets . EA's offerings include a diverse portfolio of intellectual property, featuring both wholly owned brands like Apex Legends, Battlefield, and The Sims, as well as licensed brands such as EA SPORTS FC and EA SPORTS Madden NFL . The company generates significant revenue through its live services, which provide additional content, subscription offerings, and other revenue streams beyond the sale of full games .
- Live Services - Provides extra content, subscription offerings, and other revenue streams, significantly contributing to EA's overall revenue.
- Wholly Owned Brands - Develops and markets popular game franchises such as Apex Legends, Battlefield, and The Sims, engaging global online communities.
- Licensed Brands - Offers games under licensed brands like EA SPORTS FC and EA SPORTS Madden NFL, focusing on annualized sports titles.
- Can you elaborate on the factors that influence your decision to release games on both previous and current-generation consoles, particularly for major franchises like college football and Madden NFL, where some features are only available on Gen 9?
- Considering the sluggish growth trends in the industry over the past few years, what external dynamics do you believe are impacting demand, and how might these turn into catalysts for future growth?
- With the ongoing video game actors' strike, how do you assess the potential risk of disruption to your business in the near term, and at what point could this start affecting your release schedule?
- Regarding the Sims franchise as one of your tentpole brands, what specific strategies are you implementing to drive growth, such as reducing friction to bring in more players or expanding onto other platforms?
- How has your thinking evolved on free-to-play as a monetization strategy in the HD gaming market versus the multimodal monetization success you've experienced with EA Sports, and do you feel free-to-play has been dilutive to industry pricing power or gamers' perception of value?
Competitors mentioned in the company's latest 10K filing.
- Established interactive entertainment companies - Compete with EA in developing games and services for consoles, PCs, and mobile devices .
- Emerging start-ups - New entrants in the interactive entertainment industry .
- Large, diversified technology companies - Compete with EA in the converging gaming, technology/internet, and entertainment industries .
- Providers of different sources of entertainment - Such as movies, television, online casual entertainment, and music .
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Sony | Platform partner (publishing) | Console | Direct sales represented 37% of total net revenue in FY 2024 and 32% in FY 2023. |
Microsoft | Platform partner (publishing) | Console | Direct sales represented 16% of total net revenue in FY 2024 and 16% in FY 2023. |
Recent developments and announcements about EA.
Financial Reporting
- Net Bookings: Approximately $2.215 billion.
- GAAP Net Revenue: Approximately $1.883 billion.
- GAAP Diluted Earnings Per Share: Approximately $1.11.
- Net Bookings: Updated to a range of $7.000 billion to $7.150 billion for the fiscal year ending March 31, 2025.
- Global Football Performance: The franchise, which had seen double-digit growth in prior years, is now expected to decline by mid-single digits due to a slowdown in momentum during Q3.
- Dragon Age Engagement: Approximately 1.5 million players engaged during the quarter, which is nearly 50% below expectations.
- Andrew Wilson, CEO: Highlighted underperformance in key titles like Dragon Age and EA SPORTS FC 25 but expressed confidence in the company’s long-term strategy and a return to growth in FY26.
- Stuart Canfield, CFO: Emphasized balancing future growth investments with operational discipline and reiterated confidence in EA’s financial framework.
- EA will release its full Q3 FY25 results on February 4, 2025, followed by a conference call at 2:00 PM PT (5:00 PM ET). The call will be accessible via dial-in or webcast (source link).
- Decline in Live Services Net Bookings: Initially projected to grow by mid-single digits, now expected to decline by the same margin.
- Positive Player Feedback: Recent updates to EA SPORTS FC 25, including a gameplay refresh and Team of the Year update, have shown encouraging early results.
Earnings Report
Electronic Arts (EA) has released preliminary earnings results for its third fiscal quarter of 2025, ending December 31, 2024. Below are the key highlights:
Preliminary Q3 FY25 Results
Revised FY25 Outlook
CEO and CFO Statements
Upcoming Events
Key Trends
For further details, EA’s financial results will be available on their investor relations website after the market closes on February 4, 2025.