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Electronic Arts video games benefit from Grand Confinement

The Grand Containment allowed the American video game publisher Electronic Arts (EA), which produces the popular FIFA football games and the Sims simulation, to achieve better results than expected between April and June.

EA reported nearly $ 1.5 billion in revenue in the first quarter of its lagged fiscal year, up 20.6% from the same period last year. The markets were betting on 1.05 billion. A large part of the planet has been confined in recent months, with very reduced outputs, and took the opportunity to play video games. “This is a first quarter of unprecedented growth for our business, greeted the CEO of the group Andrew Wilson, quoted in a press release. “Player engagement during the first quarter was exceptionally high and well above our expectations”, underlined the financial manager Blake Jorgensen.

Digital bookings (the amount of products transmitted digitally, the industry’s preferred indicator) almost doubled compared to the first quarter of 2019, reaching $ 1.39 billion. Net income was $ 365 million for the quarter, well above the $ 270 million expected by EA.

A clear drop

However, this is down sharply from the 1.4 billion recorded last year, but this profit was inflated by a one-off tax refund. Adjusted per share, it stands at $ 1.25.

For the year 2021, EA, which also produces Madden NFL 20, Star Wars, and Apex Legends, expects sales of $ 5.6 billion, net income of 869 million and adjusted earnings per share. of $ 2.97. Digital reservations are expected at $ 5.9 billion. Two major releases are expected in the coming months and are expected to support growth: Madden NFL 21 on August 28, and FIFA 21 on October 9. Wall Street welcomed the results, and the stock climbed 0.48% around 9:11 pm GMT, in after-market trading.

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