Electronic Arts published its latest earnings report today, and it was a weaker-than-expected third quarter based on the fact that the company has lowered its revenue outlook for the future.
EA's shares went down nine percent following the news.
The company lowered projections for its full-year adjusted revenue from $5.20 billion to $4.75 billion, attributing the cut to a challenging third quarter, which ended on December 31.
EA reportedly earned $262 million in profits on $1.28 billion in revenues generated during its third quarter, which includes the three months prior to December 31st.
“The video game industry continues to grow through a year of intense competition and transformational change,” Chief Executive Andrew Wilson said in a statement. “Q3 was a difficult quarter for Electronic Arts and we did not perform to our expectations.”
This lines up with what was expected for Q3, despite launching Battlefield V back in November 2018. The game shared a similar launch window to titles like Red Dead Redemption II and Call of Duty: Black Ops 4, and fell behind in terms of dollar sales.
Wilson admits that Battlefield V didn't meet expectations, but mentions focusing on maintaining long-term live services for players. "We're very excited about Apex Legends, the upcoming launch of Anthem, and a deep line-up of new experiences that we'll bring to our global communities next fiscal year," he added.
As for Q4, EA predicts $1.163 billion in net revenue and $170 million in net income. March 31 also marks the end of EA's fiscal year, with the company predicting net revenue for the year of roughly $4.875 billion, and net income of $980 million.