EA capitalizes on gaming boom exceeding Q421 expectations
56m | Natalie Bannerman
Electronic Arts (EA) reported positive preliminary financial results for its fourth quarter and full year ended March 31, 2021.
The company reported $ 6.19 billion in net bookings, up 15% year on year and $ 600 million above the company’s full-year forecast. Net bookings correspond to the net number of products and services sold digitally or physically sold during the period.
“Our teams have done an incredible job over the past year to deliver incredible experiences during a very difficult time for everyone in the world,” said Andrew Wilson, CEO of Electronic Arts.
“Thanks to considerable commitment across our portfolio, we achieved a banner year for Electronic Arts. We are now accelerating in FY22, fueled by the expansion of our successful franchises into more platforms and geographies, a significant pipeline of new content and recent acquisitions that will be catalysts for future growth. “
At the same time, net income was $ 76 million for the quarter, down 18.8% from 2020, and $ 837 million for the year, down 27.5 % compared to the previous year. This is despite the fact that operating cash flow was $ 371 million for the quarter and $ 1.9 billion for the year.
In addition, the company paid a cash dividend of $ 0.17 per share during the quarter.
The news was prompted by the Covid-19 pandemic which has forced people to spend more time at home, having to turn to cloud games for entertainment.
According to Facebook’s game marketing statistics for 2021 in the United States, the gaming audience has grown to 28 million people since March 2020, with a 28% jump in mobile games, and in the United Kingdom, the he gaming audience grew to 8.6 million, with 50%. increase in mobile gaming.
This in turn has an impact on networks and supporting infrastructure, for example, the London Internet Exchange (LINX) saw its network reach over 6 Tbps in April 2020, “ many of those spikes were related to an increase in online games, with such significant peaks. updates are being released for games like Fortnite and Call of Duty, ” he reported.
“EA had an excellent quarter, thanks to the live services and tremendous performance of Apex Legends. Apex has grown steadily over the past year, driven by the games team and the content they deliver, ”said Blake Jorgensen, COO and CFO of Electronic Arts.
“Looking ahead, the momentum of our existing live services provides a solid foundation for FY22. Combined with a new battleground and our recent acquisitions, we expect net bookings growth among teens. “
Looking ahead, the company’s net sales for fiscal year 22 are expected to reach $ 6.8 billion, and net profit is expected to reach $ 390 million. With dividends reaching $ 1.34 per share and operating cash flow to reach $ 1.7 billion. Net bookings are expected to continue at about $ 7.3 billion.