The game’s name in the first quarter of fiscal 2021 was again “live services” for Electronic Arts, but the game’s full net reserves also experienced a considerable leap for the publisher in the three months ending the June 30, 2020, probably in a small part due. to blockages related to COVID-19.
With two game releases last quarter compared to none in the first Q1 of the previous year: Command & Conquer Remastered and Burnout Paradise Remastered, EA saw net bookings of full-game and live services jump considerably, possibly also helped by the release of nearly 30 of the publisher’s titles on Steam throughout the quarter.
EA also announced that The Sims 4 has reached over 30 million total players on all platforms since its release.
Net income from full parties in the first quarter amounted to $ 359 million, up 37% year-on-year, while net income from live services amounted to $ 1.1 billion, up 16%, a total of net revenue of $ 1.46 billion during the quarter, up 21% year-on-year. over-year.
EA’s net income reached $ 356 million, with a dramatic reduction of $ 1.42 million in the same quarter last year.
However, this much lower net income is related to a few unique tax events that occurred in the first quarter of last year. One involved a U.S. court ruling on share-based compensation costs that required EA to file a tax accrual.
The other was due to EA transferring some of its intellectual property rights to a Swiss subsidiary at the same time as a Swiss referendum changed the rates of income taxes, allowing the company to obtain an income tax benefit of about $ 1.7 billion for this year alone.
EA’s net reserves last quarter reached $ 1.39 billion, up from $ 782 million year-on-year in large part due to year-over-year growth of 98% of net console reserves, which only went entail $ 824 million of the total.
Otherwise, net reserves of full games increased 202% year-on-year to $ 287 million, and net reserves of live services increased 61% to $ 1.1 billion.
Looking ahead to the next quarter, EA has narrowed its outlook for both the decline in live service expectations for Madden NFL 21 and the October 9 launch date of FIFA 21, which has boosted it. towards the third quarter.
For the second quarter, EA expects net revenues to be $ 1.13 billion, net revenues of $ 61 million and reserves of $ 875 million lower than the initial forecast of $ 525 million.
However, EA has increased its net reserve forecast for the third quarter by $ 450 million, and in the fourth quarter by $ 85 million.
Throughout the year, EA has slightly increased its revenue forecast from $ 5.5 billion to $ 5.63 billion, as well as its net reserve forecast of $ 5.5 billion to $ 5.95 million.
However, it has slightly reduced its net revenue projections from $ 978 million to $ 869 million.