×

EA Tops Revenue Estimates for June Quarter, Sets ‘Apex Legends’ Esports Tournament

Video-game giant Electronic Arts beat revenue forecasts for the June quarter, and although it didn’t release any new titles during the period the company talked up the strength of its current and upcoming slate of titles.

Shares of EA rose 4.5% in after-hours trading on the results.

For the quarter ended June 30, the company’s first quarter of fiscal 2020, EA reported $1.209 billion in net sales, up 6.3% year over year. EA reported net bookings of $743 million (down 0.8% year over year), topping Wall Street expectations of $719 million. The company calculates net bookings by adding total net revenue to the change in deferred net revenue for online-enabled games and mobile platform fees.

EA’s newest release is season 2 of “Apex Legends” (pictured above), which launched on July 2. On Tuesday, the company and studio Respawn Entertainment announced the Apex Legends Preseason Invitational, an esports tournament with a $500,000 prize pool to be held Sept. 13-15 in Kraków, Poland, featuring a field of 80 teams from around the world. Upcoming releases are slated to include new “Madden NFL” and “EA Sports FIFA” editions, while “Star Wars: Jedi Fallen Order” is on tap for November 2019.

“We had a strong start to FY20, bringing rich new experiences to our growing communities for ‘Apex Legends,’ ‘EA Sports,’ ‘The Sims’ and more,” CEO Andrew Wilson said in announcing the results. “From great new games to live services with longevity, subscriptions on more platforms and competitive gaming for more franchises, we’re pushing to lead with innovation, quality and choice for our players.”

During the June quarter, “FIFA Ultimate Team” had more than 3 million players logging in daily during the Team of the Season in-game event, while downloads of “The Sims 4” expansion packs and game pack increased 55% year-over-year. In addition, the company said, “Star Wars: Galaxy of Heroes” had nearly 80 million players to date as of the end of the quarter.

The company posted net income of $1.42 billion ($4.75 per share), missing analyst EPS estimates of $5.65. The quarterly net income included a $1.08 billion tax benefit related to an internal transfer of some of its intellectual property rights to its Swiss subsidiary (where EA’s international business is headquartered) where Swiss income tax rates are set to change, as well as a decision by the Ninth Circuit Court of Appeals regarding stock-based compensation expenses that required EA to record a tax accrual.

According to EA, digital net bookings for the trailing 12 months was $3.73 billion, up 5% year-over-year, representing 76% of total net bookings.

For the September 2019 quarter, EA expects net revenue to be approximately $1.315 billion and net bookings of $1.23 billion, with net income of $776 million (approximately $620 million of which is related to income tax benefits).

More Gaming

  • Activision-Blizzard-Overwatch-League-Grand-Finals-2018

    YouTube Scores Exclusive Streaming for Activision Blizzard's E-Sports, Including Overwatch and Call of Duty Leagues

    YouTube landed a multiyear deal as the exclusive live-streaming partner for Activision Blizzard’s e-sports events worldwide, including Overwatch League, Call of Duty League, Hearthstone Esports. The agreement (which excludes China) promises to give a big boost to YouTube Gaming, the video giant’s dedicated home for all things related to games. It’s also a loss for [...]

  • Conan Unconquered

    Tencent Bids for Control of Funcom 'Conan' Games Developer

    China’s social media and gaming giant Tencent is bidding to buy control of Funcom, developer of the “Conan” and “Dune” games. The bid values the Norwegian company at $148 million. Tencent already owns 29% of Funcom, and its bid has been unanimously approved by Funcom’s board of directors. No management changes are planned. The shares [...]

  • 100 Thieves

    Esports Organization 100 Thieves Unveils New Facility in Los Angeles

    As of Wednesday, popular esports organization 100 Thieves has an official home in Los Angeles. The group unveiled its new 15,000 square-foot facility, officially named the 100 Thieves Cash App Compound, in a media preview with some of its biggest personalities and owner Scooter Braun on hand. Also in attendance was Jack Dorsey, the CEO [...]

  • Marvel-Strike-Force-FoxNext

    Disney Sells FoxNext Games Unit to Scopely

    Disney has sold off FoxNext Games, the studio it obtained through the purchase of 20th Century Fox, to mobile-games developer Scopely. Terms of the pact were not disclosed. Under the terms of the pact, Scopely is acquiring FoxNext Games Los Angeles, the game studio behind hit game “Marvel Strike Force,” and San Jose-based Cold Iron [...]

  • Call of Duty The Campaign

    Watch the First Episode of New Call of Duty League Docuseries 'The Campaign' (EXCLUSIVE)

    Even a new league comes with history. That’s one of the takeaways from the first episode of “The Campaign,” which follows the Chicago Huntsmen in the lead-up to Activision Blizzard’s new franchised Call of Duty League. Variety is debuting the first episode exclusively, which details some of the narrative that follows the Huntsmen (based in [...]

  • Vindex - Imax

    Imax Jumps Into Esports in Exclusive Pact With Startup Vindex

    Hold on to your popcorn: An Imax location near you could soon be beaming live competitive video-game action onto its big screens. Imax has inked a partnership with Vindex (vindex.gg), an esports infrastructure startup formed by Major League Gaming co-founders Mike Sepso and Sundance DiGiovanni, under which Vindex will create esports events and experiences exclusively [...]

More From Our Brands

Access exclusive content