EA Sports FC Underperforms: EA Shares Drop 7% After Forecast Cut

EA Shares Drop 7% Following Lowered FY Forecast

Electronic Arts lowered its full-year bookings outlook on Wednesday, citing poor performance from its soccer series, EA Sports FC, as the reason for the shortfall. The stock fell 7% during prolonged trading. In contrast to its earlier projection of $2.4 billion to $2.55 billion in net bookings for the fiscal third quarter, which concluded on December 31, EA stated that it anticipates reporting roughly $2.215 billion.

The business said in a statement that its December quarter revenue will be around $1.88 billion, with diluted earnings per share of $1.11. In contrast to its earlier forecast of $7.5 billion to $7.8 billion, EA stated that it anticipates net bookings for the entire fiscal year, which ends on March 31, to be between $7 billion and $7.15 billion. EA claims that both revenue from online games and sales of physical games are included in net bookings.

Dragon Age Misses Targets as EA Reports Challenges in Q3

A vulnerability in the most well-known soccer video game franchise since 1993 is exposed by the alert. Formerly released under the FIFA name, EA’s agreement with FIFA expired in 2022, and the final two EA soccer titles are now marketed under the EA Sports FC name. The company also reported that 1.5 million people played Dragon Age, a role-playing game for gaming consoles like the Sony PlayStation and Microsoft Xbox, during the quarter, which was almost 50% less than what the company had anticipated.

EA reported that although net booking for their soccer franchise, Global Football, had grown by double digits over the previous two years, it began to slow down in the December quarter. According to the corporation, it anticipates a reduction in Global Football sales year over year and a drop in online sales or live service bookings in fiscal 2025. The majority of the live services shortfall was caused by the company’s soccer team.

During Q3, we continued to deliver high-quality games and experiences across our portfolio. However, Dragon Age and EA SPORTS FC 25 underperformed our net bookings expectations.

EA CEO Andrew Wilson

For more up-to-date crypto news, you can follow Crypto Data Space.