New Need for Speed, “weak” sales of Battlefield V, record the collapse of the stock: the main report of the EA
Company Electronic Arts published a report on the results of its activities in the third quarter of 2019 financial year (1 October — 31 December 2018). The results have appeared below predicted by analysts, resulting in the shares of the publishing house experienced the greatest decline over the past ten years (their value dropped more than 17 %). From the document revealed some interesting details about future releases: we plan to release a new part of Need for Speed and Plants vs. Zombies. In addition, supervisors talked about his disappointment in the sales of Battlefield V.
Net profit in the reporting period increased the company received $262 million while the same quarter of the 2018 financial year brought her $186 million in losses. Net income amounted to $1,289 billion, while the company relied on $1.725 billion However, the reason does not apply to sales of games: a lump-sum tax payment that Electronic Arts paid for at the end of 2017. However, against the background of these news, shares still fell: at the close of trading on 5 February, the drop was 17,52 %.
Electronic Arts is known for outstanding results in the segment of digital sales, subscriptions and micropayments, but in the third quarter related revenue decreased (3 %). Revenues from FIFA Ultimate Team has grown (6 %), but decreased revenue from Battlefield 1 and the mobile games sector the drop was huge — 22% compared to the same period last year. This decrease explains the publisher to release a game (probably Star Wars: Rise to Power) and weak start Command & Conquer: Rivals.
For the second year in a row Electronic Arts has to make excuses for selling games DICE, which are below the predicted. During the Christmas season of 2017 the frustration brought Stat Wars: Battlefront II, and at the end of 2018 — Battlefield V. By the standards of the other major publishers start selling shooter was very good — 7.3 million copies (as many users bought before 1 January 2019) — but Electronic Arts had hoped to sell at least a million more. In addition, the game failed to significantly spur the growth of subscribers Origin Access Premier. Probably on sale was negatively impacted by the delay of release (the game came out about a month later than planned) and the absence at the start of some expected features such as the mode of the battle Royal, which will start only in March.
At a meeting with investors, CEO of Electronic Arts Andrew Wilson (Andrew Wilson) confirmed the development of a new Need for Speed and Plants vs. Zombies. In the second case it was about the shooter, therefore, most likely, we can expect the next Garden Warfare. Neither the one nor the other games there are no official names. The timing of the release is unknown; the project also was not told anything.
It is known that Respawn Entertainment is working on Titanfall 3, but the company has promised to release this year “premium new game” series, which will play a major role in its development. Apparently, Electronic Arts is planning another spin off like the recent Apex Legends, but not shareware.
In the fourth quarter Electronic Arts expects to receive $1,163 billion of net income. The publisher has high hopes for the Anthem, which will be released on 22 February (the projected sales volume in this period is 5-6 million copies), and Apex Legends, which already has an annual development plan. Neither one of these games, however, can not be called a win-win bet: start a new game BioWare is unlikely to pass smoothly, and a Royal battle in the universe of Titanfall may suddenly lose players (though I gained 2.5 million users in just a day).