Electronic Arts beats quarterly profit estimates on strong 'FC 24' demand
Jan 30 (Reuters) - Electronic Arts beat analysts' estimates for quarterly profit on Tuesday, on the back of a strong performance from its revamped soccer gaming franchise "FC 24".
Strong consumer spending amid an easing macroeconomic environment has aided demand for EA's gaming titles such as "FC 24", "Madden NFL" and "Star Wars Jedi: Survivor" during the holiday quarter.
"EA SPORTS FC outperformed expectations again this quarter, delivering 7% year-over-year net bookings growth, as momentum continued through the FC brand transition," said EA Chief Financial Officer Stuart Canfield, referring to net bookings in the company's most popular franchise.
"FC 24" is EA's first soccer game without the "FIFA" brand in nearly three decades.
The video game sector as a whole is expected to pick up pace in 2024 after steadily recovering from a post-COVID slump in demand last year aided by the release of popular titles such as "FC 24" and Warner Bros Discovery's "Hogwarts Legacy".
The global video game market is set to grow 2.8% to $189.3 billion in 2024, according to research firm NewZoo.
EA reported bookings of $2.37 billion for the quarter ended Dec. 31, missing analysts' estimates of $2.39 billion according to LSEG data.
It reported adjusted profit of $2.96 per share compared with estimates of $2.93 per share.
The company also nudged up its annual profit forecast to $4.21 to $4.68 per share from its previous projection of $4.10 and $4.66.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Krishna Chandra Eluri)
