Electronic Arts Inc. (NASDAQ:EA), the video game publisher, dropped over 6% as it reported first-quarter net bookings, a key indicator of revenues, came in at the lower end of guidance, according to the company’s latest trading update.
Even though net bookings of US$1.5 billion represented a record for first-quarter levels and a 21% increase year-on-year, it was at the lower end of the company’s guidance.
Live services and other net bookings rose by 4% to reach US$1.7 billion, representing 65% of total net bookings.
Revenue came in at US$1.9 billion for the quarter and diluted earnings per share lifted to US$1.47 from US$1.11 a year prior.
Launching a cash dividend of US$0.19 per share, the group said net cash for the quarter was US$359 million and US$1.9 billion for the 12 months prior.
Looking forward, EA has a “multi-year pipeline” starting with the release of “culture-defining titles” such as Madden NFL 24 and EA Sports FC 24.
Shares in EA Sports opened at around US$129 on Wednesday, up nearly 4% year-to-date.