(Reuters) – Electronic Arts Inc on Tuesday forecast quarterly adjusted sales below estimates as easing COVID-19 curbs cool the pandemic-era gaming rage by unlocking other avenues for entertainment.
The video game publisher behind “Apex Legends” expects second-quarter adjusted sales between $1.73 billion and $1.78 billion, compared with analysts’ estimate of $1.87 billion, according to Refinitiv IBES data.
Rival Activision Blizzard had also delivered a disappointing second quarter, while Sony Group Corp trimmed its annual profit forecast after its PlayStation business faltered.
U.S. consumer spending on video games fell 11% in June and is expected to decline 8.7% in 2022 on growing recession concerns, supply snags and a lighter slate of releases, according to analytics firm NPD.
EA’s first-quarter adjusted sales of $1.3 billion was lower than last year’s, but still beat Wall Street targets thanks to the popular “FIFA” franchise and the recent launch of “F1”.
Net income for the quarter ended June 30 rose to $311 million, or $1.11 per share, from $204 million, or 71 cents per share, a year ago.
Earlier on Tuesday, Spanish sports league LaLiga said the California-based company’s EA Sports unit will replace Spanish bank Santander as the title sponsor of LaLiga soccer competitions.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Devika Syamnath)
