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EA Reports Q3 FY25 Miss, Lowers Guidance on Gaming Franchise Weakness

$EA (+4,06%)


FINANCIAL PERFORMANCE

Net Bookings

- Q3 FY25: $2.215B

- FY25 Guidance: Revised down to $7.000B-$7.150B

- GAAP Revenue: $1.883B

- GAAP Diluted EPS: $1.11


KEY FRANCHISE PERFORMANCE

Global Football

- Projected mid-single-digit YoY decline after two years of double-digit growth

- FC 25 "Team of the Year" update and gameplay refresh receiving positive feedback

- Significant slowdown in momentum affecting overall performance


Dragon Age

- Current player engagement: 1.5M users

- 50% below internal expectations

- Underperformance contributing to guidance revision


FORWARD OUTLOOK

Fiscal Year 2025

- Net Bookings guidance lowered

- Global Football and Dragon Age weakness primary drivers

- Maintaining operational discipline focus


Fiscal Year 2026

- Management projects return to growth

- Planning launches of iconic franchises

- Strategic focus on long-term opportunities


MANAGEMENT COMMENTARY

Andrew Wilson, CEO

- Reaffirmed confidence in long-term strategy

- Acknowledged near-term challenges

- Emphasized upcoming franchise opportunities


Stuart Canfield, CFO

- Highlighted operational discipline

- Focused on FY26 growth initiatives

- Managing investment and cost balance


UPCOMING EVENTS

- Full Q3 FY25 earnings call scheduled for February 4, 2025


MARKET IMPLICATIONS

- Near-term headwinds likely to impact trading sentiment

- Long-term recovery potential tied to FY26 franchise launches

- Focus on operational efficiency during transition period

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