Yahoo Finance Electronic Arts Is Optimistic about Fiscal 2017
Star Wars: Battlefront Sales Launch Electronic Arts' Fiscal 4Q16
Gaming industry continues to evolve
Electronic Arts (EA) is confident that it can remain a major player in the rapidly evolving gaming market, where it competes with companies such as Activision (ATVI) and Zynga (ZNGA). Activision is a competitor in the PC and console space, and Zynga is a major player in the digital segment.
Electronic Arts was the leading publisher on Xbox One (MSFT) and Japan’s (EWJ) PlayStation 4 (SNE) in fiscal 2016.
EA was the most downloaded mobile game publisher in 2015, and the firm is investing deeply in pioneering new growth opportunities. Electronic Arts notes that its technology platform continues to implement a “cross-platform, cross-title identity system” that helps players stay connected to their games and friends.
Fiscal 2016 was the strongest year in the firm’s history, and EA is confident that fiscal 2017 will be even better. EA’s CEO, Andrew Wilson, stated, “FY16 was a phenomenal year for Electronic Arts. Our non-GAAP revenue, earnings and cash flow for the year were all at record levels and exceeded our guidance. It was a year of growth and milestones, demonstrating our unique ability to connect hundreds of millions of players across genres, geographies and platforms to the games they love, and to each other.”
Revenues of $4.9 billion expected in fiscal 2017
In fiscal 2017, EA expects non-GAAP (generally accepted accounting principles) revenues of $4.9 billion and net income of ~$1.1 billion. As we discussed in the previous part, EA has an impressive lineup of games for fiscal 2017 such as Battlefield 1, Titanfall 2, and Mass Effect: Andromeda. Digital revenues are expected to rise by 15% year-over-year in fiscal 2017.
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