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Electronic Arts grow after earnings thanks to positive news

EA reported positive results and a promising future outlook. Shares are up 10% despite the announcement of the end of cooperation with FIFA.

Shares of Electronic Arts are up 10% following the release of its press release for the quarter ended March 31. Adjusted sales were $1.75 billion, slightly below estimates, which were $1.78 billion. But revenue from “live services,” which make up the bulk of EA’s revenue, rose 17% year over year to $1.39 billion from $1.1 billion a year earlier.

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In the next quarter, EA expects adjusted revenue of between $1.20 billion and $1.25 billion, compared with average analyst expectations of $1.44 billion. The company also expects revenue of $7.9 billion to $8.1 billion in the current fiscal year, roughly in line with Wall Street estimates.

Investors are attracted by the prospect of new games

The company also announced that it will be releasing 4 games in the near future that has not yet been publicly disclosed. EA has a large portfolio of well-known titles such as Battlefield™, Apex Legends™, The Sims™, Need for Speed™, Titanfall™, Plants vs. Zombies™, F1®, and FIFA

Electronic Arts logo on a wall

The last-mentioned title under discussion

FIFA is one of the most played sports games ever. Since 1993, FIFA has been giving its players an increasingly real insight into the world of football and the opportunity to become a part of it, at least virtually.

But that’s all over now. EA and the governing body of world football, FIFA, have not agreed on a further contract extension. On the table was an offer for another eight years of exclusivity for all FIFA gaming and e-sports rights. However, FIFA did not like this offer and thus the last installment of this iconic game will be FIFA 2023.

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However, EA will continue to create games set in the world of football and has confirmed that it will be releasing a game under its name, EA Sports FC, from next year.

Gaming is one of the fastest-growing industries

Gaming overall is one of the fastest-growing sectors in the entertainment industry. Electronic Arts are one of the most well-known companies and so far there is no indication that it will face any major problems in the near future. So, it can be assumed that EA will be one of the companies that will be among the movers and shakers of this whole industry.

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...

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