Despite Some Negative Publicity, EA's Got Game

Net revenue of $1,160 million (up 1% year over year) was in line with guidance of $1,135 million. Total revenue from consoles grew 2% to $810 million, as the strong growth for the current consoles (up 8%) was partially offset by the ongoing decline for older consoles (down 62%). Mobile continues to expand for EA, with revenue up 12% year over year, as mobile sports games continue to gain traction. Digital sales continue to drive overall growth as the category increased to 64% of sales on a trailing 12-month basis versus 57% a year ago. Despite removing microtransactions from Battlefront II, live services revenue was up 27% on a trailing 12-month basis versus the third quarter of fiscal 2017 as Ultimate Team modes in both FIFA and Madden continue to grow in popularity.

Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.