105.38 0.00 (0.00%)
After hours: 4:53PM EST
|Bid||105.54 x 900|
|Ask||106.50 x 1000|
|Day's range||105.24 - 109.22|
|52-week range||86.24 - 114.13|
|Beta (5Y monthly)||1.05|
|PE ratio (TTM)||11.09|
|Earnings date||04 May 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||119.55|
Electronic Arts Inc. (NASDAQ:EA) came out with its third-quarter results last week, and we wanted to see how the...
Activision's (ATVI) fourth-quarter 2019 results are likely to have benefited from strength in popular franchises despite intense competition.
(Bloomberg Opinion) -- EA micro-transactions: They’re in the game. If you’re like me, you grew up hearing a similar catchphrase, likely while playing the FIFA soccer video game on an earlier iteration of the PlayStation system. EA refers, of course, to Electronic Arts Inc., the game publisher’s parent company, which nowadays is valued north of $30 billion. FIFA is still its most popular franchise, but selling a disc at a local GameStop is no longer the primary way companies like EA make money. Increasingly, the industry model is centered on digital downloads, subscriptions, mobile play, live online events and — for the big moneymaker — tiny in-game purchases, also known as micro-transactions. That notable shift makes a year like 2020 an interesting one. Expected later this year are the launches of Sony Corp.’s PlayStation 5 and Microsoft Corp.’s Xbox Series X, the next generation of video-game consoles (and potentially the last, as gaming shifts to the cloud). Traditionally, that would mark a pretty important stage in the business cycle for EA and its publishing rivals, such as Activision Blizzard Inc. and Take-Two Interactive Software Inc.; new consoles need new games, which means a big sales boost is on the way. But this time, it comes without the lull that usually occurs leading up to it. And that’s thanks to — gamers, you love to hear it — micro-transactions. “Because of all that ancillary revenue, primarily from micro-transactions, games aren’t as tied to console cycles as they used to be,” Michael Pachter, an analyst for Wedbush Securities, said in a phone interview. EA’s quarterly results released last week showed that the category it calls live services, which include in-game purchases, was the biggest driver of net revenue, bringing in $677 million. That compares with $469 million from packaged goods (e.g., physical discs) and $286 million from full-game downloads. Activision Blizzard and Take-Two are both scheduled to report their earnings Feb. 6.Live services can extend the useful life of a game, giving EA more opportunities to make money from users long after the initial purchase. A popular version of this is FIFA Ultimate Team, which is a bit like fantasy soccer in that users try to assemble the best team possible by paying for points that can then buy packs of players, hopefully some star names. According to one fan site, a “silver players pack” costs the equivalent of 83 cents, while a “jumbo rare players pack” is about $17. For a different kind of example of a micro-transaction: Activision Blizzard’s World of Warcraft players can buy Argi, a digital pet, for $10. There’s also a Call of Duty: Modern Warfare “battle pass bundle” for the equivalent of $24, according to the Washington Post.EA got off to a rough start with micro-transactions. In 2017, the company’s Star Wars Battlefront II was originally developed with virtual loot boxes that could enhance a character’s abilities. It turned into a major controversy, the concern being that when in online-multiplayer mode, users who shelled out more money were more likely to win. Amid the backlash, EA got rid of the loot boxes and instead left micro-transactions for benign cosmetic upgrades.Then in November, EA released Star Wars Jedi: Fallen Order to a much warmer reception. The company originally predicted it would sell 6 million to 8 million units by the end of March, but it has already surpassed that number and now sees 10 million in sales. And this time, it’s treading carefully in bringing live services to the game. “We’re very conscious about not trying to get people to spend beyond what their spend levels are,” Blake Jorgensen, EA’s chief operating officer and chief financial offer, said on the earnings call.On top of the success of live services, EA — along with its competitors — is preparing to introduce new hit games for the next-gen consoles, such as a new version of Battlefield and another Star Wars. Walt Disney Co.’s Lucasfilm makes the movies, but for now, the force is with EA.To contact the author of this story: Tara Lachapelle at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Today, Electronic Arts Inc. (NASDAQ: EA) unveiled the official Madden NFL 20 Super Bowl LIV prediction in a whole new way, with Peyton and Eli Manning pushing the button and releasing the prediction details live from EA SPORTS BOWL in Miami. The prediction calls for a Kansas City Chiefs victory and their first Super Bowl title since 1969.
Electronic Arts (EA) delivered earnings and revenue surprises of 10.71% and 0.71%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Investing.com - Electronic Arts (NASDAQ:EA) reported on Thursday third quarter earnings that missed analysts' forecasts and revenue that topped expectations.
Los Angeles-based mobile gaming company Scopely unveiled its newest game, Scrabble GO, now available for pre-order on Android and coming to iOS later this year. Working with Hasbro in North America and Mattel globally, the launch of Scopely's new Scrabble game was two years in the making. Building on the success Scopely has found with another Hasbro property -- Yahtzee -- Scopely first reached out to the gaming company to see if they'd be open to working with the relatively young gaming firm on a new title.
Electronic Arts (EA) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Electronic Arts (EA) third-quarter fiscal 2020 results are expected to benefit from strength in live services, aided by expansion of its gaming portfolio amid stiff competition.
Electronic Arts (EA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Activision Blizzard (ATVI) is benefiting from franchise strength. The upcoming launch of Galakrond's Awakening for Hearthstone expands its gaming portfolio.
(Bloomberg) -- The electronic sports industry is likely to grow significantly in coming years and stocks in the sector are poised to benefit, according to DBS Group Holdings Ltd.E-sports, or multiplayer video games played competitively by professional gamers, is a key investment theme in the Singapore-based bank’s quarterly CIO outlook as the phenomenon gains traction among increasingly wealthy millennials and their Generation Z counterparts. Live streaming will help lead to “exponential growth,” with companies such as Activision Blizzard Inc., Nintendo Co. and Tencent Holdings Ltd. set to benefit, according to Thursday’s report.“E-sports is expected to undergo phenomenal growth in the coming years - from both a viewership and monetization standpoint,” the report said. “Game developers are predominantly the biggest beneficiaries given that they are involved in almost every facet of e-Sports – from games publishing to the creation of leagues and the hosting of tournaments.”Streaming platforms and hardware manufacturers will also benefit, it said.Read: Even Small Esports Names Gain as Industry Matures, Stephens SaysExposure to the field has already been paying off for investors. The MVIS Global Video Gaming and eSports Index is up 47% since the end of 2018, compared with the S&P 500’s 31% advance. The gauge of 25 companies which includes NetEase Inc., Zynga Inc., Take-Two Interactive Software Inc. and Electronic Arts Inc., has risen 3.4% this year versus a 1.4% gain in the broader benchmark.(Adds story link after fourth paragraph.)To contact the reporter on this story: Joanna Ossinger in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Cormac Mullen, Naoto HosodaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Electronic Arts Inc. (NASDAQ: EA) will release its financial results for the third fiscal quarter, which ended December 31, 2019, after the close of market on Thursday, January 30, 2020. In conjunction with this release, EA will host a conference call to review its financial results for the third fiscal quarter, discuss its outlook for the future and may disclose other material developments affecting its business and/or financial performance. Listeners may access the conference call live via a dial-in number or audio webcast.
(Bloomberg) -- Frank Gibeau had only just become Zynga Inc.’s CEO, but he had to deliver some bad news.The once-high-flying company, which shot to fame with Facebook games such as FarmVille, was now in trouble. At an all-hands meeting in Zynga’s cafeteria in March 2016, Gibeau put up a slide showing its return on equity compared with video-game peers. The room was very quiet.“I showed them that we are the worst of the worst,” he recalled in an interview. “We are generating less return than everybody else in the industry.”Fast-forward three years, and the mood is very different. The company increased its guidance three times last year. Profit margins have rebounded, and sales are growing at their fastest pace since the game developer went public in 2011. Zynga is “on track to be one of the fastest-growing -- if not the fastest-growing -- gaming company at scale,” Gibeau said.Zynga shares have nearly tripled to $6.15 since Gibeau, now 51, took over as chief executive officer. That includes a 56% gain in 2019, eclipsing the S&P 500’s 29% increase.The stock is still far below its post-IPO high set in 2012, when the exuberance around social media propelled Zynga to almost $16. But shareholders and Wall Street analysts are embracing the company again.“Investors like a good turnaround story,” said Colin Sebastian, an analyst at Robert W. Baird & Co.Along the way, Gibeau reinvented what Zynga is about. It now makes only a sliver of its money from Facebook-based games, which gave the company a reputation for delivering endless requests and notifications to social-media users.Instead, Zynga focuses on stand-alone titles that consumers play on their phones. They include Words With Friends, Zynga Poker, and Merge Dragons!, which lets players combine dragon eggs and treasures to produce skills and objects.Zynga also has used acquisitions to dial up growth. In 2018, it agreed to buy controlling stakes in Small Giant Games for about $560 million and Gram Games for $250 million. And it has a war chest of cash and short-term investments that’s approaching $1.5 billion, which could be used for additional deals. To raise money, Zynga has sold bonds and made more than $300 million from unloading its San Francisco headquarters in a leaseback deal last year.Spending SpreeThe idea is to create a mini-empire of game studios and franchises, said Gibeau, a veteran of Electronic Arts Inc.“We see a lot of opportunities to acquire assets that would grow value for shareholders,” he said. “We want to put those dollars to use.”Zynga is preparing to reinvent itself again by embracing new platforms and devices -- no matter what they may end up being.“Ten years from now, I know for a fact that the platforms will be different,” he said. “There could be other platforms -- like streaming platforms, cloud-based gaming.”The video-game consoles that dominated the industry for so long may not exist in a decade, opening the door to other options, Gibeau said. “I want our games to be playable on anything, even if it’s a toaster or refrigerator.”Zynga has already jumped onto Snapchat. And while it hasn’t provided details on what else is in the works, the company is developing a new multiplatform strategy.“We have a saying, ‘Make platform transition your friend,’” Gibeau said. “You can turn yourself out of position, which frankly Zynga did by being so focused on Facebook.”When Zynga struggled to pull out of its slump, co-founder Mark Pincus recruited Gibeau out of retirement. Though Gibeau was only in his 40s, he’d already spent 25 years at Electronic Arts and helped turn that company around.“I really wasn’t looking for a job,” Gibeau said. “I was getting in shape. I was flying airplanes. I was looking to apply for a master’s program in history. I was spending time with my kids, traveling.”But Bing Gordon, a fellow Electronic Arts veteran who served on Zynga’s board, approached Gibeau for help on behalf of Pincus. A 30-minute chat over coffee with Pincus turned into a three-hour meeting, and Gibeau soon joined Zynga’s board. He found himself visiting the company once a week, then everyday, and he was asked to become CEO.“I just fell in love with the place -- I love turnarounds,” Gibeau said. “I learned a lot from the failures at EA. I looked at it and thought, ‘Man, this is perfect.’ I knew exactly what to do here.”The biggest task was focusing. Under Gibeau’s new management team, Zynga went from working on about 140 projects to a dozen games.The company concentrated on so-called live services -- basically, providing new content for existing games on an ongoing basis -- and tried to make its games more complex and engaging. It also invested in titles tied to movie franchises, such as Harry Potter and Star Wars. And Zynga expanded into Asia and other markets.‘Firm Footing’“The company has significant live-services expertise and has a strong advertising platform, so it can help rapidly scale promising games as they come to market,” said Matthew Kanterman, an analyst at Bloomberg Intelligence. “All in, Zynga is on firm footing for the next few years.”Zynga’s comeback is far from complete. Its profit margins still trail those of peers, and its ability to catch up will depend on the games it releases in 2020 and beyond.But the company has a happier workforce -- and takeover targets actually want to be acquired by Zynga. That wasn’t the case a few years ago, said Mike Hickey, an analyst at Benchmark Co.“Frank and his management just reset the culture and what the market perceives Zynga to be,” he said. “You stop worrying about losing your job and start getting excited about the bonus you make because you’ve hit your goals. That’s the biggest step in a turnaround.”To contact the reporter on this story: Olga Kharif in Portland at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, Rob Golum, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.