Key facts
- Electronic Arts reported first-quarter bookings of $1.35 billion, missing analysts' average estimate of $1.48 billion.
- Profit for the quarter ended June 30 rose to $397 million from $201 million in the year-ago period.
- The company's 'Battlefield' franchise has struggled to maintain player engagement after launch.
- Saudi Arabia's Public Investment Fund and a group of investors received EU approval for their $55 billion deal to take Electronic Arts private.
Electronic Arts missed analyst expectations for first-quarter bookings, reporting $1.35 billion against an estimated $1.48 billion. The shortfall was attributed to a post-launch decline in player engagement for its 'Battlefield' franchise, raising concerns about its long-term revenue potential from live-service games.
Despite the bookings miss, the company's profit for the quarter ended June 30 increased to $397 million from $201 million in the prior year. Electronic Arts relies heavily on in-game spending to sustain its titles.
The company is also anticipating competition from Take-Two Interactive's upcoming release of 'Grand Theft Auto VI,' which is expected to draw player attention and spending away from rivals.
Last week, the Saudi Public Investment Fund and its partners secured EU approval for their $55 billion deal to take Electronic Arts private.