Electronic Arts Q1 2024 Financial Results

Electronic Arts experienced a challenging first quarter for fiscal year 2025, ending June 30, 2024, as the company reported declines across all primary financial metrics. Net revenue fell 13.7% year-over-year to $1.6 billion, while net profit dropped 30% to $280 million. Net bookings also saw a 20% decline to $1.26 billion, though this figure still managed to exceed the company’s internal guidance. Despite these decreases, management emphasized that the results were better than anticipated, driven by strong live service performance and consistent player engagement.

The revenue breakdown highlights a heavy reliance on live services, which accounted for 85% of total net revenue, while full-game sales saw a significant 43.5% decline to $250 million. By platform, consoles remained the dominant driver of bookings at 53.6%, followed by PC and mobile at 23.4% and 23%, respectively. Key portfolio performance included record net bookings for EA Sports FC Mobile and double-digit growth for the Madden NFL franchise. Additionally, the launch of EA Sports College Football 25 saw strong initial adoption, reaching 5 million unique players in its first week.

Looking forward, the company is prioritizing the expansion of its massive online communities and the integration of user-generated content, particularly within The Sims 4. Leadership identified a strategic shift in consumer behavior, noting that 25% to 30% of industry engagement now involves watching content rather than playing. Consequently, Electronic Arts aims to leverage non-interactive media to drive monetization. Future growth is expected to be supported by the upcoming release of Dragon Age: The Veilguard and continued efforts to return the Apex Legends franchise to growth.