EA Reports Stellar Quarterly Earnings On The Profits Of Titanfall, FIFA, UFC And Mobile Games
The monolithic games company, Electronic Arts, has reported Q2 profits in excess of 50% during the same time period last year. The company earned $335 million during the three month period ending on June 30, giving the company roughly $775 million in profit year-to-do date and beating its initial Wall Street projection of $713.2 million handily.
The company has Titanfall, FIFA 14 and Ultimate Fighting Championship to thank for its success, according to CFO Blake Jorgensen: "On the digital side, (we saw) great continued growth on mobile and PC full game downloads and our subscriptions business with all of those up dramatically," he told Reuters.
Electronic Arts' shares have soared about 30 percent since it launched its Xbox exclusive sci-fi shooter game "Titanfall" on March 11. According to the BBC, $105 million of its mobile revenue during the period "comprised of digital extra content and advertising revenue, reflecting the shift to the freemium business model". The number was up 39% from the same period last year.
The news is certainly heartening for EA investors, who have seen EA going through some rough times. A ten percent reduction in the workforce last years, and a consistently poor earnings' report and the departure of then CEO John Riccitello put EA in a hole that they have since climbed out of spectacularly.
EA's stock price remained relatively unchanged before the end of trading on Tuesday.
The company may not always put out many games, but the ones they do are absolutely huge. Dragon Age: Inquisition has been delayed a month until November, but that will only give it more of a chance to succeed. A new version of The Sims, with a subscription service is sure to get people opening up their wallets. And of course, the yearly installments of Madden, NHL and FIFA; the last of which is sure to rake in the dough across the globe after the excitement of this year's World Cup.
Battlefield: Hardline, originally scheduled for October, has been pushed back into 2015 for development reasons. A blow to EA's margin, but one I am sure the company can weather.