Electronic Arts (EA, Financial) posted strong results for the second quarter. The company posted better than expected revenue and earnings on the back of strong new titles, deep player engagement and ongoing digital growth. EA is looking for a better half of the year and is expecting continued growth momentum in future. EA is seeing good traction from the console and PC logged users. It saw a considerable increase in the number of gamers. With the growing mobile usage EA is also seeing great opportunities in the mobile gaming. EA is further planning to innovate and bring in more games across some of the popular genres to deliver long lasting fun and enduring vale for its customers.
What's expected
Moving on, EA is expecting greatly from FIFA 15. However, the game remained in the Q2 just for two week, FIFA 15 crossed 3.4 million unique players. Traction for FIFA 15 is strong and the company is thinking that FIFA 15 will gain more traction than FIFA 14. Further with the upcoming soccer season, EA is excited about the performance of FIFA 15 and its contribution to the revenue.
EA is undertaking many strategies to improve its profitability. It is focusing on various aspects to gain more traction for its games, contributing meaningfully to the top line in the coming quarters. Its digital transformation strategy remains on track and with this it is expecting its industry leading portfolio of games to strengthen more. In this course, EA has also launched EA access which is a new digital service for Xbox One which allows the gamers to play unlimitedly across a selection of EA games, benefiting EA in monthly and annual fee.
Moreover, the digital segment for the company is carrying huge opportunities on the international front as well. It is seeing a good traction in Asia. In Asia, EA is seeing Korea and China to be among the most potential markets for EA. To explore these growth opportunities, EA is looking for new ways and strategies to reach more players and improve its customer base.
Holiday season expectations
EA is confident of performing well in the upcoming holiday season. Its most awaited game Dragon Age: Inquisition is on track to be launched soon. With its 150-hour gameplay and good visuals it is expected to attract a good number of gamers in the coming quarters which will surely contribute meaningfully to the company’s growth strategy going forward.
It has a fresh lineup of games that are going to be released in the coming quarters including some expansion packs some of the popular games by EA. It expects good engagement for its game The Sims 4 as players will receive two updates in this fiscal year. In addition, in the mobile segment SimCity and Peggle Blast are up for release. Moreover, the expansion for its most popular game Battlefield 4 is going to release it fifth expansion pack which is expected to attract many gamers which will have a positive impact on company’s revenue.
Conclusion
Hence, this gaming company is doing well to tap the growth of the gaming market across different platforms. As a result, it looks like a good long-term investment in order to benefit from growth of the gaming market.
