Electronic Arts (EA 112.51, -5.09) has given up 4.3% in pre-market after reporting first quarter results and reaffirming its guidance.
The video game publisher reported first quarter earnings of $2.06 per share, which may not be comparable to Street estimates. Revenue grew 14.0% year-over-year to $775.00 million, which was ahead of expectations.
The company was pleased with continued user engagement in its high-budget franchises like Battlefield, The Sims, Star Wars, and the EA Sports portfolio. Furthermore, first quarter results were underpinned by a strong engagement in event-driven live services in games like Battlefield and FIFA. The Sims 4 on PC saw its monthly active players increase by more than 20.0% year-over-year.
Net cash provided by operating activities surged to a first-quarter record of $176.00 million from a use of $118.00 million one year ago. For the trailing twelve months, net cash from operating activities totaled $1.87 billion.
Packaged goods and other net revenue declined 2.1% year-over-year to $570.00 million while Digital Net revenue jumped 27.6% to $879.00 million. This underscores the ongoing shift towards more digital sales and away from physical sales. Total revenue checked in at $1.45 billion, before the subtraction of $674 million of deferred net revenue from online-enabled games.
Going forward, Electronic Arts expects to record a second quarter loss of $0.18 per share while revenue is expected to hit $1.16 billion. This includes expectations for $205.00 million in deferred net revenue.
The company reaffirmed its outlook for the full year, expecting earnings of $3.57 per share on revenue of $5.10 billion. Deferred net revenue is expected to increase full year revenue by $25.00 million.