EA raises revenue forecast, falls short of expected

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Aug 4 - Videogame maker Electronic Arts Inc on Wednesday raised its adjusted annual revenue forecast but fell short of estimates as easing COVID -19 curbs hit some demand for its mainstay titles like FIFA 21 and Apex Legends.

The Redwood City, California-based company said it expects full-year adjusted sales of $7.4 billion from earlier $7.30 billion, while analysts expected $7.45 billion according to Refinitiv IBES data.

EA emerged a clear pandemic winner after lockdowns ignited a boom in game time and money spent, with a 200% surge in publisher's share last year driving an over 30% surge in gaming revenues, but that has started to cool off as easing COVID - 19 curbs entice gamers to ditch their consoles and step out more.

Rivals Take-Two and Activision Blizzard also forecast disappointing annual revenue earlier this week.

Still, EA adjusted sales remained at $1.34 billion for the first quarter ending June 30, beating expectations of $1.28 billion.

Net income fell to $204 million, or 71 cents per share, from $365 million, or $1.25 per share, a year ago.