Electronic Arts (EA) announced record profits of $1.15bn in its Q2 financial report. The company exceeded market expectations due to high sales of popular games such as FIFA and The Sims, with a total net revenue of $5.5bn during the quarter. Live services contributed $1.49bn to the results, and Star Wars: Galaxy of Heroes recorded its highest-ever revenue. Sports franchises continue to be a major revenue source, with FIFA 22 selling over 1.5 million units in its first week. As stock values increased 6.2% to $147.65, EA plans to expand its current and new franchises, including the launch of Battlefield 2042 on 19 November 2021.
Electronic Arts Announces Record Profits in Q2 Financial Report
Overview
Electronic Arts, one of the leading video game company, announced its Q2 financial results with the company reporting a record profit of $1.15 billion. The company’s earnings exceeded market expectations due to high sales of its popular games such as FIFA and The Sims. According to its financial report, the company made a total net revenue of $5.5 billion during the quarter.
Revenue
EA’s revenue growth was driven by its live services, which contributed $1.49 billion to its Q2 financial results. Additionally, its mobile game, Star Wars: Galaxy of Heroes, recorded its highest-ever revenue for the quarter. The company’s sports franchises also continued to be a major source of revenue as FIFA 22 sold over 1.5 million units in the first week of its release.
Stock Value
Following the announcement of these impressive financial results, EA’s stock value soared by 6.2% to $147.65 on Tuesday, 26th October. The company’s total market capitalization now stands at $42.57 billion.
Future Plans
In light of these strong Q2 results, EA confirmed that they are looking to expand its current franchises while also investing in new games. The company is planning to release several new titles, including Battlefield 2042, which is set to launch on 19th November 2021.
Conclusion
EA’s impressive Q2 financial report highlights the company’s continued growth and success in the video game industry. With high sales of its popular games and plans to release new titles, EA is well-positioned to maintain its strong financial performance in the upcoming quarters.