EA Has Strong First Quarter, Projects Positive 2015 Despite Battlefield, Dragon Age Delays
EA has announced its financial results for first quarter 2015 (ended June 30, 2014). The company exceeded digital and packaged goods revenues in comparison to this time last year.
Net revenue was up from $949 million in first quarter 2014 to $1.214 billion in first quarter 2015. Net income was up from $222 million to $335 million.
The company also reports record cash flow. Notably, console digital revenue is up by 67 percent year over year and has grown 23 percent across the past 12 months.
The bulk of that remains DLC, though full game downloads are up 87 percent from this time last year. For the trailing twelve months, full game downloads have increased by 58 percent.
EA has delayed two major titles. Dragon Age Inquisition has slipped to November and Battlefield Hardline will be released in 2015. As EA is still anticipating Battlefield Hardline in this fiscal year, total year projections are not affected by the delay. EA also plans to launch its PGA Tour title in early 2015 before the end of the current fiscal year.
The Battlefield Hardline delay will have an impact on EA, as the title will miss the crucial holiday season. As February and March become a new battleground period for game releases, Hardline will likely have less competition, but not much. The silver lining is that Visceral and EA are taking the necessary time to get Battlefield Hardline right and avoid the problems of Battlefield 4.