Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Shares in video game giant EA plunge, after 11% quarterly revenue dip

Published 07/30/2015, 06:48 PM
Updated 07/30/2015, 06:53 PM
Electronic Arts, the developer of FIFA '16, saw its quarterly revenue decrease 11% on Thurs.

Electronic Arts, the developer of FIFA '16, saw its quarterly revenue decrease 11% on Thurs.

Investing.com -- Shares in Electronic Arts Inc (NASDAQ:EA) took a 3% nosedive in after-hours, after the California-based developer of popular video games such as Madden NFL 16 and FIFA 16 saw its revenue fall by 11% for its opening quarter of fiscal year 2016.

While the video game manufacturer experienced a 10% spike in digital net revenue on an adjusted basis, its overall revenue still fell to $693 million for the quarter, during a period usually rife with muted sales after the Holiday purchasing craze wears down. Electronic Arts attributed its digital growth in part to its Ultimate Team feature, which allows players to compete with friends and foes over an online platform.

"Q1 was a great start to fiscal year 2016 for Electronic Arts as we continue our journey to put our players first and deliver amazing entertainment experiences," said Chief Executive Officer Andrew Wilson. "We have players engaging for longer periods in our live services, ongoing strength across our digital business and growing anticipation for our upcoming titles."

Strong demand in the company's mobile products also helped bolster its growth expectations for the remainder of the year. Electronic Arts said the level of monthly active users for its mobile game titles averaged more than 150 million in its first quarter, as more than 16 million matches of FIFA 15 were played on average per day.

"EA delivered first quarter revenue, margins and EPS above guidance through strength in catalog sales and outperformance in digital live services offerings," said Chief Financial Officer Blake Jorgensen. "We are raising our full-year guidance today to reflect the momentum across our portfolio."

The company expects to earn full-year GAAP revenue of $4.3 billion, an increase of approximately $50 million.

Shares in Electronic Arts fell 2.30 or 3.18% in after-hours to $72.30. Last week, Electronic Arts shares surged to an all-time high of $74.79. Despite Thursday's slight decline, shares in Electronic Arts are still up more than 53% this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.