EA released on Thursday this fiscal year the second quarter earnings, performance more than analysts expected. Due to The heavyweight game "Star Wars: The Old Republic" (Star Wars: The Old Republic) will be launched in December, so EA raised this fiscal year of The annual performance expectations.
The new performance expectations not up to expectations
However, due to the magnitude of the performance expectations rise EA not up to investors expect, EA shares in the us stock market on Thursday in after-hours trading fell more than 4%.
EA will this fiscal year of the annual earnings per share from previous expected 70 to 90 cents to 90 cents rise to 75. Just raise revenue expected and can't meet the lower limit of Wall Street's expectations, Wall Street hope this fiscal year EA second half performance will have improved significantly. According to the Reuters survey townsend, some analysts even EA is expected to this fiscal year earnings per share will reach $1.13.
Sterne Agee analyst lavender and carry the · Evans (Arvind Bhatia) said: "people expect more, and attention to current quarter on the progress of the company, so the share price fall EA." EA now expects, annual revenue this fiscal year will be us $4.2 billion, higher than the average analyst forecasts of 4.1 billion dollars.
Digital business strong
EA CFO Eric Brown (Eric Brown) said, EA performance expectations rise is largely due to the strong digital business. He said: "we are very confident, fiscal year 2012, we all year digital business revenue will be very easy to more than 1 billion dollars."
Brown also said, at present had the tens of thousands of people made a reservation "Star Wars: the old republic." EA hope this game can challenge the blizzard of dynamic depending on world of warcraft, the latter has 12 million players. Reports say EA this game r&d investment in the more than 100 million us dollars, the game will be listed on 20 December.
Other video game company with same, EA also began in online games and social games for more investment. In that field, EA's a main competitor is Zynga. EA is now more sales digital content, because the margins is far higher than the traditional game CD sales, and sales of such products also need not and GameStop, etc for revenue into the game retailers.
EA said on Thursday, has 6 million users to download the company earlier this year launched digital platform. Through this platform, users can download directly from EA to complete the game. The Star Wars: the old republic "can also download through the platform.
Brown said, EA released earlier this week the new game "battlefield 3" has reached the expected sales. He said: "we think, the game will be in the Christmas holidays next year and continue to perform well, not just in the first week of release." EA this game the main competitive goal is to move on the blizzard the call of duty.
In ended September 30 of this quarter after adjusting the EA revenue up 17%, to $1.03 billion, more than analysts expected average of $966.56 million. EA major revenue growth momentum from the FIFA 12 "and madden NFL 12". Consider from the network game's pass ductility revenue, EA this quarter after adjustment for earnings per share five cents, and analysts expect this season, the EA will loss per share 4 cents.
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