EA announced its fiscal 2023Q2 quarterly earnings: In-app purchases and online services account for the majority of revenue
EA recently announced its Q2 financial report for the fiscal year 2023, which mentioned that EA did not meet expectations in some aspects and that the launch of “FIFA 23” this year, various in-app purchases, and online services are the main drivers of EA’s revenue. Finally, EA expects strong revenue growth in 2023 under the blessing of famous IPs such as “Dead Space” and “Star Wars”.
EA grew to $7.4 billion in annual net bookings, which is EA’s revenue from selling physical discs and digital versions of its products during the period. Quarterly net bookings rose 4% year over year to $1.75 billion but fell short of analysts’ expectations of $1.9 billion.
Online services revenue rose 7% year over year and also accounted for 74% of EA’s net bookings for the quarter. Almost 3/4 of EA’s revenue comes from in-app purchases and online service content, which shows that in addition to the sales of the game itself, additional revenue sources are needed.
EA’s total net income was $1.9 billion, up 4.2% year-on-year, while net income was $299 million, up 2%. For 2023 revenue, EA predicts that due to the launch of several well-known masterpieces in the coming year, net bookings will increase from $7.9 billion to $8.1 billion, and net profit will also increase to a range of $871 million and $934 million.
As for what masterpieces will be launched in 2023, EA CEO Andrew Willson revealed that there will be “Star Wars Jedi: Survivor”, “Dead Space Remake”, “Need For Speed Unbound” and “EA Sports PGA Tour”.
