Electronic Arts Reports Higher Revenue But Also Higher Costs
Electronic Arts increased its revenue year-on-year in the important third quarter of the current financial year, thanks in part to the success of Battlefield 6. However, higher development and marketing costs are weighing on profits.
Electronic Arts generated total revenue of $1.9 billion in the period from October to December, which EA has now reported as its third financial quarter. That is $18 million more than in the previous year. However, when cumulative sales for the current financial year are taken into account, there has not yet been a turnaround. After nine months, EA stands at $5.41 billion for the current financial year. In the previous year, the figure was $5.57 billion.
The situation remains unchanged, with increased costs in both periods weighing on profits. In the third quarter of the financial year alone, costs for both research and development and marketing rose by $100 million each compared to the previous year. As a result, operating profit fell from $377 million to $127 million and net profit from $293 million to $88 million year-on-year. Looking at the nine-month period, profit halved compared to the previous year to $598 million (operating) and $426 million (net).
However, the important KPI net bookings, which is the sum of all digital sales, some of which are only booked as revenue later depending on the term, and physical goods sold to retailers, is a positive sign. This figure rose by 38% compared to the previous year.
In its quarterly report, EA itself highlights the continued strong demand for EA Sports FC and Apex Legends. Battlefield 6 also receives special mention, being named the best-selling shooter of 2025 and setting a franchise record in terms of engagement, according to EA.
Looking at the individual details, there are few surprises. The share of physical games continues to decline sharply. The ratio between full game marketing and live services/other remains at one-third to two-thirds.
EA continues to be strongest in the console segment, which accounts for over 60% of revenue with $1.18 billion. The share of PC games in revenue has risen by almost 4 percentage points to over 24%, while that of mobile games has fallen slightly to around 13%.
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