Big video game publisher Electronic Arts has been on a roll since Andrew Wilson took over as chief executive in September 2013. And that roll is continuing, as EA reported second fiscal quarter earnings that beat expectations for the quarter ending Sept. 30.
The company’s results are widely watched as a bellwether for the $91 billion global market for all things gaming. EA had been forecast to post non-GAAP earnings of 45 cents per share on revenue of $1.1 billion for the September period. The company reported results of 65 cents a share on revenue of $1.5 billion. A year ago, EA had a profit of 73 cents a share on $1.22 billion in revenue.
Earlier in the day, EA’s stock price fell a bit. In after-hours trading, EA’s stock rose 3 percent — and promptly fell 1 percent again.
During the quarter, EA released its Madden NFL 16, FIFA 16, and NBA Live 16 titles. EA’s shares have more than doubled in the past year. A year ago, EA’s second fiscal quarter benefited from the release of The Sims 4 and a relatively weak dollar.
EA’s digital game sales accounted for the vast majority of total revenue. In the first quarter, digital sales were 77 percent of revenue. That speaks to a big transformation that EA has undergone in the past five years.
EA Access lets Xbox users pay for new games before they are released, for $5 a month or $30 a year. EA’s FIFA Ultimate Team also lets players purchase virtual items with real money.
EA’s big title coming in November is Star Wars Battlefront, whose beta test was played by more than 9.5 million people. The Need for Speed reboot also debuts in November.
In a statement, Wilson said, “It’s been a great quarter. Our EA Sports titles are connecting millions of passionate fans around the world to each other and the sports they love, we have new mobile experiences for our players, and deeply engaged communities in our live services. With Star Wars Battlefront launching in less than three weeks, and a stunning new Need for Speed just days away, we’re excited for the holiday season and the remainder of the fiscal year for Electronic Arts.”
“Results exceeded our expectations again,” said chief financial officer Blake Jorgensen, in a statement. “Based on the ongoing strength of our business and reception of Star Wars Battlefront, we are raising our full-year outlook for the second time. Our markets are very healthy, the digital transition continues to drive margins, and engagement in our live services and excitement for our upcoming launches is exceptional.”
EA had previous raised its revenue guidance from $4.4 billion to $4.45 billion. It also previously raised its non-GAAP, full-year earnings forecast by 10 cents to $2.85 per share. EA kept the revenue guidance at $4.4 billion, and it raised its forecast to $3 a share. For the fiscal third quarter ending Dec. 31, EA forecasted it would report non-GAAP earnings of $1.75 a share on revenues of $1.77 billion.
In the September quarter, EA’s apps and web sites reached an estimated 37 million monthly users on PCs and mobile devices, according to Verto Analytics. In terms of engagement, EA said that 16.4 million Draft Champions games have been played in Madden NFL 16, 10.9 million massages have been received in The Sims 4, 1.3 billion game sessions in SimCity BuildIt.
Above: EA by the numbers