EA Sports FC 24 Surpasses Projections, Drives EA's Q3 Expansion

Electronic Arts has released its Q3 FY24 earnings report, covering the period ending December 31, 2023, which reveals modest revenue growth and a substantial increase in profits that exceeded the company's projected range. The key financial highlights include: Revenue of $1.95 billion, representing a 3% year-over-year increase; Net income of $290 million, up 42% from the previous year; and Net bookings of $2.37 billion, with a 1% year-over-year growth. EA witnessed growth across all its key performance indicators during the holiday quarter, with EA Sports FC being a notable standout. According to EA CFO Stuart Canfield, 'EA Sports FC surpassed expectations once again this quarter, achieving 7% year-over-year net bookings growth, as the momentum persisted through the FC brand transition.' The first installment under the new EA Sports FC banner, EA Sports FC 24, launched in September, following EA's separation from FIFA. Despite the name change and being compared to the FIFA World Cup-boosted 2022, the franchise demonstrated resilience. Canfield stated, 'We will continue to build upon the strength within our portfolio, while prioritizing investments in our largest opportunities for multi-year growth.' The Madden franchise also saw a 5% year-over-year growth in net bookings during the third quarter. EA's live services set a new record, generating $1.71 billion in Q3 revenues, a 3% year-over-year increase, and now account for 73% of the company's revenues. In contrast, full game sales declined by 5% year-over-year to $654 million and by 27% from the third quarter of two years ago. The company's major releases for this Q3 included NHL 24, UFC 5, and WRC 23. Looking ahead, EA has slightly increased its full-year forecasts, with expected net revenues between $7.41 billion and $7.71 billion, and net income ranging from $1.15 billion to $1.27 billion.