The company held InvestorDay this Tuesday (17). (Photo: EA/Disclosure)
A Electronic Arts (EA) is confident in the projection of $7.5 billion in net revenue for fiscal 2025 — the period that began on April 1 of this year and ends on March 31, 2025. The company's CFO, Stuart Canfield reiterated his willingness to reach that number.
During the InvestorDay held this Tuesday (17), the The gaming company also presented its long-term perspectives and expectations, focusing mainly on three main pillars.
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Among these points, they highlight the creation of games focusing on online communities — this includes adapting existing games to encourage this style, as is the case with The Sims —, expanding interactive narratives to double the player base and using Artificial Intelligence to optimize the user experience.
With these points very well structured, EA also revealed the next edition of the game “Battlefield”, a successful franchise of the company with more than two decades and three different editions.
Another bet by the electronic games company is the EA Sports FC franchise, which replaces the old “Fifa”, as an important strategic pillar, as it has more than 8 billion hours of engagement in the last year, consolidating itself as one of the biggest video game franchises in the West.
In this way, the company believes that by combining technological innovation, new products, and monetization strategies, EA can significantly expand its audience and consolidate itself as a leader in the digital entertainment sector.
“We are investing behind growth, but not at any cost. When thinking about organic growth, we strictly prioritize our investments in the following areas: Building communities in and around our games,” highlighted the CFO.
During the investor presentation event, the company also spoke about the recently announced share buyback program, which is worth US$5 billion over three years.
“We started executing this program last quarter. We expect to return US$1.5 billion in fiscal year 2025, and we expect to scale our program as the business grows,” he says.
What the market thought of EA's plans
O Goldman Sachs reaffirmed in a recently released report — and acquired by Investing.com — its neutral rating with a $150 price target for EA shares. The bank still reflects some caution due to the complexity of executing these strategies in a competitive and rapidly evolving market.
On the other hand, other financial institutions, such as Oppenheimer e Jefferiesmaintain positive ratings for EA, viewing it as a promising stock with the potential to accelerate reserves growth and improve shareholder returns. In addition, the forecast for a 1.7% increase in reserves for fiscal 2025 by Deutsche Bank reinforces an optimistic expectation of future performance.
The stock was falling this Wednesday (18), at 3:30 pm, with a 0.98% drop to US$ 141.22.