/// EA Predicts Digital Games Will Make Up 40 Percent of Revenue Next Year

May 7, 2012  |  All Things Digital

Electronic Arts beat both analyst expectations for revenue and profits today for the fourth quarter, driven by strong digital revenues and sales from its latest game, Mass Effect 3. But the company reported fewer than expected subscribers for Star Wars: The Old Republic, which had 1.3 million subscribers at the end of the year, falling short of analysts expectations, who were estimating that the company would report roughly 1.6 million subscribers for the online game. In response, the company’s stock was down more than 10 percent in after-hours trading to trade at $13.60 a share. The drop is especially harsh given that the company’s stock has fallen 20 percent over the past few months. As part of the financial release issued today, the company tried to paint a rosy picture of the company’s digital future. In the fiscal year 2012, it generated $1.2 billion in digital revenues, exceeding its goal of $1 billion this year, and representing a 47 percent increase year over year. In an interview, EA’s interim CFO Ken Barker said the company is forecasting digital revenues in fiscal 2013 of $1.7 billion, representing a growth rate of 40 percent. At those levels, he said digital will now comprise 40 percent of the company’s overall revenues, breaking away from its reliance on traditional packaged goods. Barker noted that in the past six months alone, FIFA 12 was able to break $100 million in digital revenues, a first for one of its packaged goods titles

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EA Predicts Digital Games Will Make Up 40 Percent of Revenue Next Year

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