Electronic Arts reported its third-quarter earnings and the results fell short of expectations.
The “Madden” and “FIFA” publisher generated $1.7 billion in revenue in fiscal Q3, compared to $1.6 billion for the same period the year prior. Despite the growth, EA missed Wall Street estimates of $1.81 billion in quarterly revenue, according to Refinitiv.
The California-based company posted record net bookings of $2.58 billion during the quarter, but missed estimates by $80 million.
Following the underwhelming results, EA has lowered its net bookings forecast for FY2022 to $7.5 billion, down from a previous target of $7.6 billion.
- EA’s live services segment generated $1.1 billion in revenue in fiscal Q3, while its full game segment posted $616 million in revenue.
- The company reported that players are spending almost 20% more time playing EA titles in FY2022 compared to the previous financial year.
EA continues to build its gaming empire through acquisitions. Last year, it acquired racing game developer Codemasters, publisher Glu Mobile, and mobile game studio Playdemic.
Another Bump in the Road
FIFA is ending its long-term exclusive partnership with EA as it looks to widen its gaming and esports portfolio. The two parties first struck a deal in 1993 that will expire in 2022.
The “FIFA” series is estimated to be worth more than $2 billion annually to EA.