August 4, 2021
(Reuters) – Videogame maker Electronic Arts Inc on Wednesday raised its annual adjusted revenue forecast but fell short of estimates as easing COVID-19 curbs hit some demand for its mainstay titles like “FIFA 21” and “Apex Legends”.
The Redwood City, California-based company said it expects full-year adjusted sales of $7.4 billion from $7.30 billion earlier, while analysts were expecting $7.45 billion, according to Refinitiv IBES data.
EA had emerged as a clear pandemic winner after lockdowns ignited a boom in the time and money spent on games, driving an over 30% surge in the video game publisher’s shares last year, but that has started to cool off as easing COVID-19 curbs entice gamers to ditch their consoles and step out more. Rivals Take-Two and Activision Blizzard also forecast disappointing annual revenue earlier this week.
Still, EA’s adjusted sales stood at $1.34 billion for the first quarter ended June 30, beating expectations of $1.28 billion.
Net income fell to $204 million, or 71 cents per share, from $365 million, or $1.25 per share, a year ago.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Devika Syamnath)