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Home / Technology / Steam launches new releases and The Sims propel EA’s first quarter earnings

Steam launches new releases and The Sims propel EA’s first quarter earnings



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.




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