Electronic Arts expects sales to fall below estimates as pandemic boom subsides


EA (Electronic Arts) video game logo is seen at Electronic Entertainment Expo (E3) held in Los Angeles, California, USA on June 17, 2015. REUTERS/Lucy Nicholson

May 10 (Reuters) – Electronic Arts Inc (EA.O) expected first-quarter adjusted sales to come in below expectations on Tuesday in anticipation of declining sales of the “Battlefield 2042” title and slowing demand due to blockades.

The results came just hours after the company announced it was ending its lucrative partnership with FIFA, the world football association, after nearly 30 years. read more

Shares of the Redwood City, California-based company fell 1.3% in long-term trading.

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The surge in sales, sparked by gamers weary of lockdowns, began to subside as normal life resumed, and rising inflation threatened to curb spending power.

Refinitiv IBES data shows Electronic Arts expects adjusted revenue of between $1.25 billion and $1.25 billion, compared to analysts’ average forecast of $1.44 billion.

Adjusted revenue for the fourth quarter, ended March 31, was $1.75 billion, slightly below expectations of $1.78 billion.

However, live services revenue, which accounts for the majority of EA’s revenue, rose from $1.1 billion a year ago to $1.39 billion in the quarter.

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Report of Tiyashi Datta from Bengaluru; Edited by Devika Syamnath

Our standards: Thomson Reuters Trust Principles.

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