Salem Radio Network News Tuesday, May 24, 2022

Science

Electronic Arts forecasts sales below estimates as pandemic boom fades

(Reuters) – Electronic Arts Inc on Tuesday forecast first-quarter adjusted sales below estimates, bracing for weaker sales of its “Battlefield 2042” title and a slowdown in lockdown-fueled demand.

The results come hours after the company said it was ending a lucrative partnership with world soccer governing body FIFA after nearly three decades.

The Redwood City, California-based company’s shares were down 1.3% in extended trading.

The lightning surge in sales fueled by lockdown-weary gamers is starting to fade as normal life resumes, while rising inflation threatens to curb spending power.

Electronic Arts forecast current-quarter adjusted sales between $1.20 billion and $1.25 billion, compared with analysts’ average expectation of $1.44 billion, according to Refinitiv IBES data.

For the fourth quarter ended March 31, adjusted sales stood at $1.75 billion, slightly below estimates of $1.78 billion.

However, revenue from live services – which makes up most of EA’s sales – rose to $1.39 billion in the quarter, from $1.1 billion a year earlier.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Devika Syamnath)

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