EA “more optimistic than ever” while the gaming boom is intact, for now

An Electronic Arts office is shown in Los Angeles, California, United States, July 27, 2020. REUTERS / Mike Blake

Aug 4 (Reuters) – Electronic Arts Inc (EA.O) on Wednesday forecast adjusted sales for the current quarter above estimates, as the video game publisher bets on a strong performance from flagship titles like “FIFA 21” and “Apex Legends,” sending its shares up nearly 5%.

EA, based in Redwood City, Calif., Also upped its annual sales forecast, but those estimates fell short, ahead of a likely slowdown in games as global economies return to normal, prompting gamers to ditch their consoles and shut down. to take out.

Rivals Take-Two (TTWO.O) and Activision Blizzard (ATVI.O) also forecast disappointing annual earnings at the start of the week.

But for now, the pandemic-era gaming frenzy is on the right track.

“We feel more optimistic than ever in this industry right now,” CFO Blake Jorgensen said in an interview, and people are engaging more with titles like “Battlefield” and “Apex Legends”.

EA had become a clear winner in a pandemic after lockdowns caused people to spend more time and money on games, increasing its shares by more than 30% last year, and investors are now watching closely. its big bet on mobile offers.

The company has invested billions of dollars to strengthen its mobile gaming lineup, putting under its marquee Glu Mobile, UK-based Codemasters and Playdemic Ltd. Read more

EA expects adjusted second-quarter sales of $ 1.73 billion, beating Refinitiv IBES ‘estimate of $ 1.51 billion. It also exceeded expectations in the first quarter ended June 30.

However, its adjusted full-year sales forecast of $ 7.40 billion is lower than the estimate of $ 7.45 billion, and first-quarter net profit fell 44% to $ 204 million. , in large part due to expenses related to acquisitions.

On an adjusted basis, the company earned 79 cents per share, beating estimates of 67 cents.

Report by Tiyashi Datta in Bangalore; Editing by Devika Syamnath

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