Shares in games manufacturer Electronic Arts (EA) fell by 1.99 per cent in after hours trading, despite the company's results for the second quarter of the 2016 financial year beating expectations.
Revenue fell to $1.15bn (£750m) from $1.22bn in the same period of last year. Digital revenue was $502m, down from $508m, whereas the revenue from packaged good and other dipped to $313m from $482m.
The company recorded a $140m loss, compared with $3m income last year.
Why it's interesting
EA raised its earnings outlook for the second time in as many quarters. It said it expected to sell 13m game in the 2016 financial year, up from an earlier projection of nine to 10 million.
EA is pinning its performance on the new Star Wars game “Battlefront.” More than 9.5m people signed up to play a few levels ahead of the game’s 17 November release, but will they deliver on the day?
What EA said
Chief executive Andrew Wilson said: “It’s been a great quarter. Our EA SPORTS titles are connecting millions of passionate fans around the world to each other and the sports they love, we have new mobile experiences for our players, and deeply-engaged communities in our live services.”
Blake Jorgensen, chief financial officer, said: “Results exceeded our expectations again. Based on the ongoing strength of our business and reception of Star Wars Battlefront, we are raising our full-year outlook for the second time. Our markets are very healthy, the digital transition continues to drive margins, and engagement in our live services and excitement for our upcoming launches is exceptional.”
With the holiday season approaching, and the highly-anticipated launch of Star Wars Battlefront game, there's every reason for EA to be optimistic about a better performance in the next quarter.