Electronic Arts Reports $1.88B Revenue, Operating Income Up 3% in Latest Quarter

Electronic Arts Inc. reported its financial results for the fiscal quarter ending December 31, 2024, revealing a total net revenue of $1,883 million, a decrease of 3% compared to $1,945 million in the same period last year. The decline was attributed to reduced sales of extra content for popular titles such as Apex Legends and the prior year releases of Star Wars Jedi: Survivor and UFC 5. Despite the revenue drop, the company achieved an operating income of $377 million, up 3% from $365 million a year earlier, and net income of $293 million, slightly higher than the $290 million reported in the previous year. Diluted earnings per share increased to $1.11 from $1.07.

In terms of operational metrics, Electronic Arts' live services and other revenue, which includes sales of extra content, totaled $1,284 million, also down 3% year-over-year. The company’s gross margin improved to 75.8%, up from 72.8% in the prior year, reflecting a decrease in cost of revenue, which fell to $456 million from $529 million. The company’s total cash, cash equivalents, and short-term investments stood at $3,155 million as of December 31, 2024, down from $3,262 million at the end of the previous fiscal year.

Strategically, Electronic Arts has been focusing on enhancing its live services offerings and expanding its digital game sales. The company reported that digital full game downloads increased by 3% to $446 million, while packaged goods sales decreased by 18% to $153 million. The company also repurchased 2.4 million shares for $375 million during the quarter and paid $50 million in cash dividends. The ongoing restructuring plan, initiated in February 2024, aims to align resources with strategic priorities, with an estimated completion by March 31, 2025.

Looking ahead, Electronic Arts anticipates continued challenges in the competitive gaming landscape, particularly with the increasing popularity of free-to-play models and the need to innovate within its established franchises. The company is also monitoring the impact of global economic conditions and regulatory changes on its operations. Despite the recent revenue decline, Electronic Arts remains committed to investing in its key franchises and enhancing player engagement through live services, which are expected to be a significant driver of future revenue.