EA fiscal Q3 earnings released

In the last update EA gave full year revenue guidance of 4,775mUSD which they have now adjusted to 4,800mUSD. That would equal a P/S 5.3x and a growth of 9% on a full-year basis. The biggest growth was in digital full game downloads which grew 50% YoY and 27% on a TTM basis.
Interestingly PC sales declined by 14% while both console and mobile sales grew 15% on a TTM basis.

EA commented that this was the first quarter ever that EA generated $1 billion in operating cash flow. They also pointed out that FIFA 17 was the best-selling console title in the world in 2016 and that Battlefield 1 was the biggest Battlefield launch ever and has a player base more than 50% larger than that of Battlefield 4 in its comparable launch quarter.

Shares of EA where slightly down in after-hours trading.

EA admitting it was wrong on Titanfall 2 / BF 1 player base?

During the latest quarterly investor call EA CEO Andrew Wilson responded to criticism of releasing Titanfall 2 and Battlefield 1 so close to each other by saying that Titanfall 2 and Battlefield 1 caters to the different types of shooter players, giving EA broad coverage of the genre.

Given that statement it is interesting to see that EA is now offering Titanfall 2 + Battlefield 1 as a black Friday 40% off deluxe special on Origin. 

EA financial Q2 results

I don't want to spend to much time on EA results as I don't think there is that kind of >50% return opportunity in the stock which I see being offered by the smaller European studios. I also much prefer to invest in companies distributing over Steam - it makes it much easier to track sales.

I think their strategy to start releasing Battlefront and Battlefield every other year (i.e. Battlefront 2 in 2017, next Battlefield in 2018 and so on) seems smart. I can only hope Battlefront 2 will be better than Battlefront 1. Given that praise EA has received for the campaigns in Battlefield 1 and Titanfall 2 (and FIFA 17 for that matter) it will probably also contain a campaign and sell well. And than there is Mass Effect Andromeda to look forward to.

EA gave full year revenue guidance of 4,775mUSD. That would equal a P/S 5x, a very un-precise estimate but for comparison it is significantly higher than many others out there.