While it remains cautious per its current quarter, EA Sports said it is positively aligned to deliver stronger growth over the long term.
American video game company and sports entertainment company Electronic Arts Inc (NASDAQ: EA) has released the results of its second quarter (Q2) performance and revenue for the 2023 fiscal year. The result shows the company has beaten expectations on both the top and bottom lines.
According to the report, EA posted revenue of $1.9 billion for the quarter, a figure that surpasses the $1.8 billion that was expected by analysts on Wall Street. Earnings Per Share (EPS) came in at $1.07 per share, up from the $0.92 per share, and Whisper Number estimates of $0.88 per share.
According to the company, the Net cash provided by operating activities was $112 million for the quarter and $1.788 billion for the trailing twelve months. EA Sports also affirmed that it invested significant cash into its buyback program, investing as much as $325 million for 2.6 million shares. The company said it paid a cash dividend of $0.19 per share during the quarter, for a total of $53 million.
Another notable highlight is that the EA player network grew to more than 600 million active accounts at quarter end.
“In Q2, EA delivered strong engagement and deeply immersive experiences across our portfolio, with new EA SPORTS titles and multi-platform live services powering the business,” said CEO Andrew Wilson. “More people than ever before are turning to games as their primary platform for social connection and creativity. With EA’s unrivaled IP, talented teams, and growing player network, we are well-positioned to lead the future of entertainment.”
EA Sports is one of the top examples of companies whose business model appears somewhat immune to the current economic conditions that have continued to plague the world. The company has gaming titles that remain evergreen amongst its loyal customers including the FIFA 23 title that it just released.
Its shares remained relatively unchanged in the pre-market today after closing Monday’s session at $126.27, up 0.25%.
EA Sports Grants a Mild Estimate to Q3
As part of its cautious model not to raise the hopes of investors, the video game publisher has given a very mild estimate in terms of what to expect in its 3rd quarter riding on the economic uncertainty around the world.
While it remains cautious per its current quarter, EA Sports said it is positively aligned to deliver stronger growth over the long term.
“Q2 was a solid quarter. We again delivered on our revenue and profit commitments, driven by our EA SPORTS portfolio and our multi-platform live services business,” said CFO Chris Suh. “With our resilient business model, disciplined execution, and healthy underlying fundamentals, we are poised to deliver long-term growth.”
With new titles such as Dead Space Remake as well as its latest partnership with entertainment maestro, Marvel, EA Sports has a lot of exciting products in the pipeline that may make it beat the competition on all fronts while maintaining its own growth records.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Ecosystem
Research
News Network
About