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EA Outperforms Expectations In First Fiscal Quarter As Digital Becomes Majority Of Revenue
EA has shared its first quarter fiscal year 2016 earnings statement, which is full of good news for investors. While revenue wasn’t as strong as the same period last year, the company exceeded sales expectations for the quarter.
Total net revenue fell slightly from $1.21 billion to $1.2 billion. Net income rose from $335 million to $442 million year over year.
Digital revenues continue to grow, and for EA they were up $87 million compared to the same quarter last year. Digital accounted for nearly 52 percent, up from 44 percent last year.
EA will be having an earnings call at 5 p.m. Eastern today. We’ll have more news as it’s available.
[Source: EA]
Our Take
We’ve been watching full-game and add-on digital sales become a growing part of the industry for a number of years. More publishers are a starting to report a majority of sales from this stream, with EA the latest. The trend continues to move in this direction, especially as publishers incentivize that method with pre-purchase bonuses and discounts.
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