EA stays positive despite drop in profits
Despite ending the latest fiscal year with total revenues down 6 percent to $3.58 billion and net income down from $98 million to $8 million, Electronic Arts remains positive about their future, with CEO Andrew Wilson stating that it had been a “transformative year” for EA. With CFO Blake Jorgensen noting that the market was currently undergoing some turmoil, the company claimed to be the best-selling publisher on the PlayStation 4 and Xbox One in the Western market, in addition for being responsible for 40 percent of total PS4 and Xbox One software sales in the West.
EA expects to improve its revenues for the current fiscal year, as it continues its digital distribution strategy, with plans for a stock repurchase program that will have the company buy back up to $750 million of company stock by May 2016. During a post-earnings conference call, CEO Wilson announced that EA would be cutting down on its release slate for the year. In addition to dropping their NCAA football series, the company is also giving the Need for Speed franchise a year off. While a new version of Need for Speed is currently in development at Ghost Games, the team is being given more time in order to produce an innovative title.
On the topic of recent big release Titanfall, EA executives revealed during the conference call that the game has already sold over 925,000 copies since being released in March. CEO Wilson also announced that EA had entered a new publishing agreement with Titanfall developer Respawn in order to continue to bring new Titanfall experiences to players worldwide.