EA Posts Major Gains in Fiscal Year Thanks to Hits From Respawn Entertainment Studio

Courtesy of EA
Electronic Arts' 'Apex Legends Squad'

Both the free-to-play 'Apex Legends' and single-player 'Star Wars Jedi: Fallen Order' helped boost earnings for the company.

Electronic Arts saw a bump in total net revenue and net income over its full fiscal year 2020 from 2019, up $5.5 billion and $3 billion, respectively. FY19 numbers in both categories totaled $3.7 billion and $1 billion, respectively.

The sharp rise in income was aided by a one-time tax benefit recognized during the fiscal year.

Also reported by the video game company on Tuesday were the results for Q4 2020, which saw a year-over-year rise from $1.2 billion to $1.4 billion in total net revenue and an increase from $209 million to $418 million in net income.

“We’ve had a strong year. Our results this quarter prove the value of the live services path we’ve been on now for a decade," said EA COO and CFO Blake Jorgensen. 

In its official filing, EA noted that the current coronavirus pandemic has driven engagement with their products. "With more people staying at home, we have experienced, and are continuing to experience, heightened levels of engagement and live services net bookings growth to date," the company stated. "The full extent of the impact of the COVID-19 pandemic to our business, operations and financial results will depend on numerous evolving factors that we are not able to predict."

The company also released its outlook for next quarter and fiscal year 2021. EA expects total net revenue to top $5.2 billion by the end of fiscal year 2021 and a net revenue of $1.2 billion over the next quarter. 

Respawn Entertainment, a subsidiary of EA since 2017, delivered two notable hits for the company over the past year, with multiplayer shooter Apex Legends becoming the most-downloaded free-to-play game on Sony's PlayStation 4 in 2019 and Star Wars Jedi: Fallen Order topping 10 million unique players since it launched in November.