Electronic Arts Inc (NASDAQ:EA) on Tuesday forecast full-year adjusted revenue above analysts’ estimates, betting that demand for its titles, including “FIFA 21” and “Apex Legends”, would stay strong even as COVID-19 restrictions ease.
The video gaming industry has been among the big pandemic winners thanks to a surge in engagement from gamers staying indoors. U.S. consumer spending on video games rose 18% in March to a record of $5.6 billion, according to data from research firm NPD.
EA estimated full-year adjusted revenue to be $7.30 billion, higher than a Refinitiv IBES estimate of $6.61 billion.
The video game publisher has been expanding its customer base and mobile gaming footprint through deals for companies including UK-based Codemasters, known for racing titles such as “F1” and “Dirt”, and the “Kim Kardashian: Hollywood” game creator Glu Mobile (NASDAQ:GLUU).
Its revenue was $1.49 billion for the fourth quarter ended March 31, beating expectations of $1.39 billion.
“EA delivered a strong quarter, driven by live services and Apex Legends’ extraordinary performance,” the company said in a statement.
But net income fell to $76 million, or 26 cents per share, from $418 million, $1.43 per share, a year earlier.
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