EA Posts Strong Quarter, With Ultimate Team Revenue Up Nearly 100 Percent
EA has announced its financial performance for second quarter of fiscal year 2015. The company boasted better than expected net revenue, with strong performance from Madden, Hockey, and FIFA Ultimate Team.
EA’s net revenue exceeded projections, leading the publisher to raise year-end projections. GAAP net revenue was $990 million for the quarter against projections of $965 million. This is a 42 percent increase over the same quarter last year.
The publisher is on track for a successful year, in no small part due to its digital performance. Digital purchases are up 6 percent on PC, 11 percent on mobile, and a significant 95 percent on console. The latter is driven largely by the success of Ultimate Team in-game transactions.
EA is experiencing 30 percent growth in its digital portfolio, with segment growth in full-game downloads at 71 percent over this time last year (likely an artifact of the new-gen support for day-and-date digital and pre-loading).
EA has three releases left for this year (not including today’s launch of NBA Live 15). Dragon Age: Inqusition is due on November 18. Battlefield Hardline was just announced for a March 17, 2015, release. PGA Tour is the only other title remaining in EA’s portfolio for the current fiscal year.
We’ll have more from the earnings call, which begins at 2 p.m. Pacific / 5 p.m. Eastern.
Publishers have been touting the growth of digital for the past year, and the new-gen consoles provide an easy conduit to players. Between in-app purchases of Ultimate Team packs, EA Access on Xbox One, and pre-ordering and pre-loading on both PS4 and Xbox One, more players are opting to forego retail purchases in favor of digital acquisition. This trend is unlikely to slow any time soon.