Electronic Arts Inc. (NASDAQ: EA) shares slipped on Wednesday after the company had reported its second quarter earnings for fiscal year 2017 and missed estimates. Share fell by over 6 percent shortly after open.
For the second quarter, EA reported total net revenue of $959 millions, up $61 million year over year, but falling short of analysts estimates of $1.18 billion. The company also reported a net loss of $22 million or an EPS of $-0.07, down from last year’s same quarter of $38 million or $-0.13, but also falling short of analysts’ estimates of $0.54.
Digital net bookings or net sales for the twelve month period was $3.24 billion, up 26 percent year over year, and now represents 63 percent of total net bookings for the same period.
The company’s player base grew significantly. FIFA Mobile unique player base grew to over 113 million. The Battlefield 1 player base grew to over 23.5 million worldwide. Sim 4 on PC monthly active users grew more than 40 percent year over year.
But analysts are looking to EA’s "Star Wars: Battlefront II” to be the main revenue driver for the 2018 fiscal year.
"It was a strong second quarter for Electronic Arts, with players around the world captivated by our new EA SPORTS titles, top-performing mobile games, and expanding esports competitions," said Chief Executive Officer Andrew Wilson.
"The digital transformation is accelerating across our industry, and we are well-positioned for continued growth with more stunning new titles, thriving event-driven live services including competitive gaming, and continuing innovation for our players on all platforms."
Analysts had projected EA to have a stronger quarter, as the company had integrated its platform to mobile services and even jumping into the competitive scene of eSports.
EA provided its full year forecast. The company expects net revenue to be $5.075 billion. The company expects net income to be approximately $1.13 billion, or an EPS of $3.63. Net bookings is expected to be $5.15 billion.