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Electronic Arts forecasts second-quarter bookings above estimates
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Electronic Arts forecasts second-quarter bookings above estimates
Jul 30, 2024 3:27 PM

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.

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