EA’s digital net sales hit record high for Q1

EA has announced its Q1 2018 results for the three months ending June 30th 2017, and digital net sales reached $3.147bn for the trailing 12-month period, representing 63 per cent of the company’s total net sales. That’s an increase of 23 per cent year-on-year.

For the quarter, total net revenue hit $1.4bn, representing an increase of 14 per cent year-on-year. Of that figure, digital net revenue made up 60 per cent of EA’s total net revenue, reaching $879m, with packaged goods and other net revenue making up the last $570m.

Net sales, meanwhile, were $775m for the quarter, up $93m year-on-year, which was largely driven by Mass Effect Andromeda and FIFA. Digital net sales hit a new record for Q1 as well, reaching $681m and up $113m year-on-year, with Mass Effect Andromeda once again being a "significant contributor" according to executive CFO Blake Jorgensen.

Full game PC and console downloads, however, only generated net sales of $111m. That’s 32 per cent higher than last year, but less than the $150m net sales generated by EA’s mobile business. 34 per cent of EA’s unit sales are now digital rather than physical, a figure that was measured on Xbox One and PS4 over the last 12 months. That’s up from 27 per cent compared to a year ago.

Other highlights include Battlefield 1 reaching 21m players as of June 30th, as well as FIFA Mobile’s unique player base growing to more than 95m.

Q1 was an outstanding quarter, with thriving player communities in our top franchises like Battlefield, our EA Sports portfolio, Star Wars, and The Sims continuing to grow our network and drive our digital business,” said Chief Executive Officer Andrew Wilson.

We have built strong momentum, and now we are accelerating into a year of tremendous innovation, where extraordinary new games, content-rich live services, and expanding global competitions will deliver more fun for our players and fuel growth for Electronic Arts.”

CFO Blake Jorgensen added: We had a great start to the fiscal year, primarily due to our event-driven live services. Our operating cash flow was the highest ever for a first quarter, and underlines how live services have fundamentally transformed our business model. Driven by innovation and live services, we expect to continue to grow our profitability and cash generation.”

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