How Madden NFL Mobile drove EA Mobile's FY16 Q3 financials

hello and welcome to his daily I'm John Jordan so the news we're talking about today is EA most financial figures so r in the financial season this is for the period of three months first October to the 31st to December 2015 so yeah as a overall company announces its figures obviously en mobile is part of that it doesn't really break them out incredible detail but we do get just the kind of headline sales figures so I like to check my Chi Chi to make sure I'm getting it right um so during the October to December period EA mobiles sales were 126 million dollars not a massive increase from previous quarter so on a quarter-on-quarter level top three percent and on a year-on-year level at some five percent now one thing fifty owned a bit of kind of technical detail on so you know you're going to get some accountancy 101 so American

companies have to announce their figures and they have to use what they call the general generally accepted accounting principles gaap your gap double egg um and that's not very great for games companies 30 games going to have a lot free-to-play games which obviously a mobile does have so probably kind of the the issue with the gap accounting is that it's how you kind of book or the coop deferred revenue so so in a free-to-play game I might spend a hundred dollars buying some gems now i'm on not use those gems straightaway i might kind of only spend ten dollars of the gems in a game so in accounting principles even though i've spent a hundred dollars in terms of my money EA has only really used ten dollars in the a's game so that's kind of the difference you have between they called GAAP and non-gaap the reasons is interesting is if we look at EA levels non-gaap bigger so basically we look at the revenues it curve kind of received

in that period of time but players didn't use consume it's a bit of a different story so on that level the revenue was checking again 162 million-dollar so quite big you know different from 162 to 126 and actually on the non-gaap level it's EI mobiles quarterly be a quarterly increase so comparing the October to December quarter to the given them my own that's right Oh Jack Shahi july-to-september quarterlies up forty-three percent so that's pretty massive so that obviously kind of into the count in terms that kind of difference will be shown up so whenever we get ea's next quarter obviously people who spend money in the in the in its q3 will eventually consume all those gems so it's not like he is losing money it's just exactly where it gets to account for it kind of

chronologically and what's really interesting is there are two games that have been really big 48 mobile during the October to December quarter one of the wheel net we know about kalubi I've been playing it a lot we've been writing about a lot so Star Wars doubts of Heroes has been a massive success hey it's been the top 20 grossing game in the u.s. in the UK and all the big kind of European markets France Germany so now if that game one generated certainly tens of millions of dollars for a the problem for her ta is that um the game only came out in absolute alongside or just before the star wars the force awakens film so there's only two weeks of that games revenue are accounted in this period so even though that's the massive success video that basically none of that none of those sales I mean a bit of it but not very much has been a mechanical in that period so we don't really see the impact of stones dancing heroes until we get the next course figures where it would be a full quarter that Ken's been operating so surprising leave absolutely provides it

surprisingly for me he's big game of the course of the one that can have created that the big non-gaap rise in sales was madden NFL mobile so men is obviously the American football game has been going crossdress platforms VA for 20 years now mo bucks there have been particularly big and that's partly because it's a game obviously it's very successful over big in America not so big in rest of our where else the American football team played and actually if you look at the three big markets for madden the mobile it's the US which is by far the strongest then Canada or Mexico pretty strong as well much from them in the UK or any other European market so they still let you can think about kind of the u.s. three million people Canada and Mexico administer that's pretty big markets getting on back over 400 million I'm getting four million people it's a fairly large market and but what he has done much more clearly than before it's

much more focused on the operating neck as a game as a service so obviously it's kind of madden is highly he kind of geared to the American football season NEA is proved to be very good this year and they kind of did the big update at the start of the season mid-october mid-august and compared to the last year 2014 this year the game rose up the charge much quicker and rose up too much high level and sustain that level pretty much for the entire season opting out soup bowls ended and what tends happened for the madden game is because there's no America but all happening anymore it kind of drops off and drops down the top grossing charts so be interesting to see whether he can maintain that at a higher level just as its kind of maintained it through the through the season at high level there's only good news for a mobile Matins done really well but for that for the quarter we just looked at and we expect kind of good things from from the Star Wars games on our next quarter so that's the big financial news we be looking at today don't forget to subscribe to our YouTube channel come

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