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Steam launches, new versions and The Sims drive EA’s first quarter gains

The name of the game in the first quarter of fiscal 2021 was “live services” again for Electronic Arts, but full online bookings also saw a significant jump for the publisher in the three months ending June 30, 2020, probably in small part. due to blocking associated with COVID-19.

With two starting games in the last quarter compared to none in the first quarter of the previous year – Command & Conquer Remastered and Burnout Paradise Remastered, EA saw full-game and live bookings increase significantly, probably helped by the close launch. 30 of the Steam publisher’s titles during the quarter.

EA also announced that The Sims 4 has reached over 30 million players in all platforms since its launch.

Net gaming revenue in the first quarter was $ 359 million, up 37% from a year, while net revenue from live services was $ 1

.1 billion, up 16% from $ 1.46 billion in net revenue for the quarter. , which is 21% more than the year, period of the previous year.

EA’s net income reached $ 356 million, a drastic decline of $ 1.42 billion in the same quarter last year.

However, this much lower net income is related to several one-off tax events that occurred in the first quarter of last year. One involves a U.S. court ruling on the cost of share-based compensation that requires EA to register a tax charge.

The other is due to the fact that EA transferred part of its intellectual property rights to a Swiss subsidiary at about the same time as a referendum in Switzerland changed income tax rates – which allows the company to realize an income tax of about 1, $ 7 billion this year alone.

EA’s net provisions reached $ 1.39 billion in the last quarter, up from $ 782 million during the year, largely due to a 98% annual increase in console net provisions, which alone brought in $ 824 million of the total.

Broken otherwise, full-game net bookings rose 202 percent year-over-year to $ 287 million, and net live service bookings rose 61 percent to $ 1.1 billion.

Looking ahead to the next quarter, EA lowered its outlook both due to lower expectations for live services for Madden NFL 21 and later than the usual release date for FIFA 21 on October 9, bringing it to Q3.

For Q2, EA expects net income of $ 1.13 billion, net income of $ 61 million and net provisions of $ 875 million – down $ 525 million from the original forecast.

However, EA increased its forecast for net bookings in Q3 by $ 450 million and in Q4 by $ 85 million.

For the full year, EA slightly raised its forecast for net income from $ 5.5 billion to $ 5.63 billion, as well as its forecast for net provisions from $ 5.5 billion to $ 5.95 billion.

However, it slightly reduced its net income forecasts from $ 978 million to $ 869 million.

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