(Reuters) -Electronic Arts Inc on Wednesday raised its annual adjusted sales forecast, betting on its soccer franchise “FIFA” and the upcoming launch of warfare title “Battleground 2042”.
The videogame maker said it expected full-year adjusted sales of $7.63 billion, compared with $7.40 billion previously. Analysts expected $7.59 billion, according to Refinitiv data.
The Redwood City, California-based company also reported a more than two-fold jump in quarterly revenue that beat expectations, sending its shares 2.8% higher in extended trading.
The gaming boom fueled by pandemic-related lockdowns has remained intact despite this year’s economic reopening, with data from analytics firm NPD showing U.S. consumer spending on video games rose 2% in the second quarter to $14 billion.
A clutch of strong titles including “Apex Legends,” “Star Wars: Galaxy of Heroes” and “Madden NFL 22” has helped EA capitalize on the demand surge.
The company has also strengthened its mobile gaming portfolio by spending billions of dollars on deals for companies like Glu Mobile, UK-based Codemasters and Playdemic Ltd.
Its net income rose to $294 million, or $1.02 per share, from $185 million, 63 cents per share, a year earlier.
Rival Take-Two Interactive Software Inc also raised its annual adjusted sales outlook to between $3.3 billion and $3.4 billion, citing strong demand for its key franchises “Grand Theft Auto V” and “Red Dead Redemption 2.”
(Reporting by Tiyashi Datta and Nilanjana Basu in Bengaluru; Editing by Aditya Soni)
