EA financials show quiet Q1 reflective of few releases
Net revenue of $1.137 billion nonetheless above estimates ahead of packed Q2
Electronic Arts has posted its Q1 financials for the fiscal year ending in March of 2019, showing a year-over-year decline in net revenue, likely due to having only one game launch during the period.
Total net revenue for the quarter was $1.137 billion, down from $1.449 billion for the same quarter last year but above the company's guidance for the quarter.
Overall, the first quarter paints a quiet start to what EA anticipates will be a far busier year. Digital net revenue was up slightly year-over-year to $957 million, while packaged goods and other sources only brought in $180 million in net revenue (packaged revenue was $570 million for Q1 last year). This is likely attributable to the digital-only Unravel 2 being the only Q1 release from EA, as well as a general trend across EA's yearly revenue showing declining earnings from packaged goods and increases in digital revenue.
For the quarter, EA also posted a net income of $293 million and a gross profit of $922 million.
For a longer view on EA's financial status, the report also offers trailing twelve months numbers that show digital net bookings of $3.55 billion, up 13% year over year and representing 69% of the total net bookings. TTM total net revenue was $4.838 billion, gross profit was $3.5 billion, and operating income was $991 million.
The company also touted accomplishments such as the FIFA World Cup content update seeing over 15 million unique players during Q1. The Sims 4 player base grew 35% year over year.
EA remains steady on its estimates for the remainder of the fiscal year despite more than meeting its estimates for the quarter. It maintained its projection of $5.6 billion in net revenue, $1.108 billion in net income, and $5.55 billion in net bookings for the fiscal year ending in March 2019. The coming quarter's releases will help get it there with planned releases of FIFA 19, Madden NFL 19, NHL 19, and NBA Live 19 anticipated to bring in net revenue of $1.27 billion, a net income of $150 million, and net bookings of $1.16 billion. Battlefield V, Anthem, and Sea of Solitude are planned for later in the fiscal year.