EA has increased revenue thanks to Star Wars, The Sims 4 and Ultimate Team

Electronic Arts presented its financial results for the quarter ended December 31, 2019, and it looks like it was a solid season for the publisher. Net revenue increased year-over-year and above expectations by $ 1.59 billion and net profit was $ 346 million, a 32% increase from $ 262 million in the third quarter of 2019. share is $ 1.18, up from $ 0.86 a year ago, but well below $ 2.51 financial analysts

The biggest story of the third quarter of 2020 for EA was the launch of Star Wars Jedi: Fallen Order, which sold significantly beyond EA’s expectations. Originally, they were planning to sell 6 to 8 million copies of the Fallen Order in total, but ended up selling close to 8 million copies in the third quarter alone. EA now expects to sell around 10 million copies of the game in EF 2020. Meanwhile, Star Wars Battlefront 2’s involvement and spending has been “exceptional”. This was partially driven by better-than-expected sales of the new Star Wars Battlefront 2: Celebration Edition, which includes all cosmetic DLCs released in the first two years of the game.

At the same time, two of EA’s top moneymakers, FIFA and The Sims 4, continued to show good results. FIFA Ultimate Team revenues increased by almost 40% over the previous year, and The Sims 4 surpassed 20 million players, probably due to the new DLC Discover University and Realm of Magic packages released in late 2019. Apex Legends appears to be on its way to becoming a new pillar for the company, with its third season of content generating more engagement than the previous two seasons.

In the full fiscal year, ending March 31, 2020, Electronic Arts increased its revenue outlook to $ 5.48 billion, from $ 5.41 billion, with net income of $ 2.93 billion and a $ 9.90 full-year earnings per share guidance. Looking specifically at the fourth quarter, EA expects revenue of $ 1.325 billion and net income of $ 308 million. If these expectations for net income for the whole year seem high, they will be part of a juicy $ 1.08 billion income tax benefit that EA pocketed in the first quarter of fiscal 2020.