July 30 (Reuters) - Video-game publisher Electronic Arts ( EA )
forecast second-quarter bookings above analysts'
expectations on Tuesday, citing robust sales of its popular
titles such as "EA FC 24".
EA's optimistic forecast suggests the firm is benefiting
from increased spending on its popular sports games like the
newly released "EA Sports College Football 25", indicating a
potential rebound in the gaming industry after a prolonged
downturn.
EA has made significant investments in reviving its
college football franchise after a decade-long break as it looks
to drive bookings growth amidst intense competition from
publishers such as Take-Two Interactive, Ubisoft
, and Roblox ( RBLX ).
Based on engagement trends in the week following its
release, "College Football 25" is expected to outsell popular
American football video game "Madden" and surpass the sales of
Take-Two's "NBA 2K", according to analysts at TD Cowen.
While analysts remain optimistic about EA's "College
Football 25", they see weakness around Apex Legends due to
recent engagement trends and player sentiment.
The company said in May that its live service net bookings
were offset by declines in Apex Legends for the fourth quarter.
EA forecast second-quarter bookings in a range of $1.95
billion to $2.05 billion, the midpoint of which is above the
average analysts' estimate of $1.95 billion, according to LSEG
data.
Bookings for the quarter came in at $1.26 billion, missing
estimates of $1.29 billion.
The Redwood city, California-based company earned $1.04 per
share compared with $1.47 per share a year ago, and left its
forecast for full-year bookings unchanged.