EA reports annual net revenues of $7.56 billion amid layoff spree

EA, the sprawling publisher that laid off 5 percent of its workforce in February, has reported net bookings of $7.43 billion for the fiscal year ended March 31, 2024. That's a 1 percent upswing-year-on-year and was largely driven by the company's roster of live service releases such as EA Sports FC and Madden NFL.

Net revenue for FY24 increased by 2 percent over that same period to $7.56 billion. Live service titles delivered $5.54 billion of that total. Full game titles pulled in $2.02 billion, with Star Wars Jedi: Survivor highlighted as a major contributor.

EA CEO Andrew Wilson said the company managed to produce "bigger, bolder world class entertainment" during the fiscal year and engaged "hundreds of millions of players and fans."

He claimed EA will "continue to build on this strong momentum through an incredible pipeline of new experiences," as it moves into the next fiscal year. The company will also continue to lay off the very people who make those experiences, with its ongoing restructuring plan only expected to be "substantially complete" by December 31, 2024.

EA is forecasting net revenues of between $7.1 billion to $7.5 billion and operating income in the range of $904 million to $1.08 billion for FY25.

EA hoping to nurture communities in pursuit of that sweet, sweet in-game spend

Discussing those results on an earnings call, Wilson said EA has built its strategic pillars around "entertaining massive online communities, telling blockbuster stories, and harnessing the power of community" as players increasingly focus their attention on "top franchises."

"As live services deliver fresh content, players are going deeper and spending more time with their friends in blockbuster experiences," he added. "For example, in North America, engagement for the top 10 franchises have increased their market share since fiscal 2022. For a company that has some of the biggest IP in the world, this trend presents an incredible opportunity to evolve as an industry leader."

He said that's why EA has taken proactive steps to "empower" its creative leaders by restructuring its business in support of those specific growth opportunities. It's a tidbit that echoes the rationale EA gave for reducing its headcount in February, when the company said it would be moving away from the development of "future licensed IP" to succeed in a changing industry.

Wilson said the success of EA Sports FC, which contributed to the "biggest EA Sports year in our history," is a prime example of what the company can achieve when it rallies behind a shared goal.

"What we know when we look at player behavior in our games, as players spend more time with friends, they play more, they play for longer, and this higher engagement leads to more in-game spend," he added, emphasizing why EA wants to lock players into its live service franchises. "FC is more than just a game, it is the world’s leading digital football fan platform—and this is just the beginning."

Apex Legends passes $3.4 billion in lifetime net bookings

Although Wilson was keen to push the success of EA's sports offerings, he claimed Apex Legends is primed for "future revenue growth" following a spate of updates that altered the mechanics of Ranked Mode and resulted in "dramatic improvements in player sentiment scores."

Apex surpassed $3.4 billion in lifetime net bookings during FY24 and Wilson said EA will continue to invest in "broadening the audience" of Respawn's freemium shooter.

Touching briefly on EA's other big action series, Battlefield, Wilson said the publisher has assembled "the largest Battlefield team in franchise history" to create deeper, connected multiplayer and single-player experiences that tie the franchise together.

That new-look team will include Dead Space remake developer EA Motive, which was recently tasked with "unlocking the full potential" of the franchise shortly after the closure of Battlefield studio Ridgeline Games.