Electronic Arts earnings rise by 51%
EA profits Surge!
Published: 23rd July 2014 | Source: Electronic Arts |
EA's Profits Rise By 51%
As you guys already know, the US game publisher Electronic Arts, or EA, is not small time when it comes to Gaming, bringing us titles like Titanfall, FIFA, Battlefield, The Sims, Crysis and many more to numerous to mention.
Being such a big player, their profits are by no means small change, making $222 million last quarter. Much more impressively their profits have rose to a staggering $335 Million this quarter, a raise of around 51%.
What caused this rise?
This success is due to great sales for recent titles like Titanfall, Battlefield 4 and FIFA 14, with the great sales experienced by the Next Generation, now current Generation PS4 and Xbox One Consoles.
EA's Mobile segment also reported high gains this quarter, with revenue from gaming on mobile devices (phones or Tablets) rising by 18% to $120m last quarter. EA attribute this growth to "freemium" model, where the base game is free and then charges for extra goods/content.
EA said that they generated $105 in revenue during this period by selling add-ons and advertisements, 39% higher than last year. Here is a quote from EA's chief financial officer, Blake Jorgensen.
"comprised of digital extra content and advertising revenue, reflecting the shift to the freemium business model".
"We continue to view mobile as a business with tremendous opportunity as the market is experiencing significant global growth in smartphones and tablets."
PC and console downloads are also on the rise, generating $79m, a 90% rise from last year. This is largely due to the next generation of consoles offering what PC users now take for granted like Release date downloads and high capacity Hard Disk Drives inside their consoles.
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