EA’s December quarter was weak as Dragon Age and soccer missed forecasts
As the big video game publisher warned, Electronic Arts reported weak earnings today for the holiday quarter, with results hurt by muted sales of its Dragon Age: Veilguard and global football (soccer) games.
EA’s stock was up 1.44% to $123 a share in after-hours trading. Net bookings for the quarter were $2.215 billion, down 6% from $2.366 billion a year earlier. Net revenue was $1.883 billion, down from $1.945 billion a year earlier.
Net cash from operating activities was $1.176 billion for the quarter. EA plans for an accelerated stock repurchase program of $1 billion, which is expected to bring total stockholder return to $2.5 billion within the first year of the $5 billion authorization.
EA preannounced weak earnings for the third-fiscal quarter ended December 31, and it also warned that fiscal year 2025 anticipated mid-single-digit growth in live services net bookings. However, the company reported a mid-single-digit decline, with Global Football accounting for the majority of the change.
Separately, Dragon Age: Veilguard only engaged 1.5 million players during the quarter, down nearly 50% from EA’s expectations. Our own Rachel Kaser loved it.
“The record success of our EA Sports FC 25 Team of the Year event demonstrates our creative teams’ ability to adapt, innovate, and execute at scale,” said Andrew Wilson, CEO of Electronic Arts, in a statement. “As we build on this momentum across EA, we are confident in a return to growth in FY26 and beyond as we bring our next wave of iconic entertainment to players and fans worldwide.”
Global Football had experienced two consecutive fiscal years of double-digit net bookings growth. However, the franchise experienced a slowdown as early momentum in the fiscal third quarter did not sustain through to the end. As a result, EA revised its outlook for Global Football to end the fiscal year down mid-single-digit at the midpoint of the new outlook.
“Today we announced plans for a $1 billion accelerated share repurchase, which is expected to bring total stock repurchases to $2.5 billion within the first year of our $5 billion authorization,” said Stuart Canfield, CFO of Electronic Arts, in a statement. “This reflects both our confidence in EA’s long-term strategy and our ability to balance investment in growth with capital returns.”
Updating its forecasts, EA said it expects net revenue for the fiscal year ending March 31, 2025, to be $7.25 billion to $7.4 billion. EA had previously anticipated $7.5 billion to $7.8 billion. Change in deferred revenue is expected to be $250 million down.
Dragon Age: The Veilguard was released in October for PS5, Xbox Series X/S, and PC.
EA said the gameplay update for EA Sports FC (released on January 16) drove engagements with over two million Ultimate Team players. EA also said EA Sports FC Mobile saw a double-digit increase in new players and engagement year over year.
EA said the Global Football (soccer) franchise net bookings have grown more than 70% over the last five fiscal years, making it one of the biggest sports entertainment properties worldwide.
American Football (Madden) saw double-digit growth in weekly active users year-over-year in the third quarter, and remains on pace to surpass $1 billion in net bookings for fiscal year 2025.
And as EA announced on Monday, EA unveiled Battlefield Labs, a new initiative allowing player-driven testing and innovation ahead of the franchise’s expected fiscal year 2026 release.
EA said that full game net bookings were $633 million, while live services net bookings were $1.58 billion.
For the fourth quarter ending March 31, 2025, EA expects net revenue will be $1.682 billion to $1.832 billion, with a change in deferred net revenue down $238 million. Net income is expected to be $171 million to $263 million. Net bookings is expected to be $1.444 billion to $1.594 billion.
FY25 is expected to be the second biggest year for the EA SPORTS FC franchise.
Yesterday, EA announced the acquisition of TRACAB Technologies, a leader in advanced sports optical tracking and analysis solutions that will enhance EA SPORTS’ ability to deliver unrivaled realism and immersive experiences.
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