Electronic Arts delivered a mixed set of results in the last quarter. Despite the decent performance of its multi-platform live services and games, the company failed to meet the revenue expectations of Wall Street but it did manage an earnings beat. In the quarter more than 10 million new players entered into the community which drives strong engagement. EA launched two innovative AAA releases recently: Need for Speed Unbound and NHL 23. The recently released Dead Space also has earned high praise from critics and fans. On some of the company’s biggest franchises, EA drove record engagement in the quarter. The player network of EA also continues to grow and its flagship, EA SPORTS FIFA delivered strong engagement this quarter across the company’s entire ecosystem. Among major updates, EA has recently announced that the company is collaborating with Marvel Entertainment on a long-term deal for developing a minimum of three innovative action-adventure games including Iron Man. Madden NFL mobile launched multiple in-game events and a new season and The Sims is also growing and evolving as a live service. We provide the stock of EA with a ‘Hold’ rating with a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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