ReportWire

Tag: media earnings

  • Electronic Arts Finishes Fiscal Year With Record ‘Madden NFL’ Growth, but Projects Harder First Quarter

    Electronic Arts Finishes Fiscal Year With Record ‘Madden NFL’ Growth, but Projects Harder First Quarter

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    EA reported its fourth-quarter and full fiscal year 2024 earnings Tuesday, revealing results that matched the video game company’s own guidance and analysts’ estimates, but forecasts for harder quarters ahead.

    Full game sales between Jan 1 and March 31 of this year were $333 million (down from $372 million in the comparable Q4 fiscal 2023 quarter), while live services and “other” revenue totaled $1.45 billion (down from $1.5 billion a year ago, and from last quarter’s record growth of $1.7 billion).

    Profit for the quarter was $182 million compared to a loss of $12 million in Q4 2023.

    Wall Street forecast earnings per share (EPS) of $1.52 on $1.66 billion in revenue, according to analyst consensus data provided by LSEG, formerly Refinitiv. EA reported adjusted EPS of $1.37 on $1.78 billion (down from $1.87 billion year over year) in revenue. Net bookings were $1.67 billion (down from $1.95 billion). All results were in line with EA’s own guidance.

    Net bookings for the entire fiscal year 2024 (which ran April 1, 2023-March 31, 2024) were $7.4 billion (up 1% from the previous year) and revenue was $7.6 billion, in line with guidance between $7.3-7.7 billion and slightly under Wall Street analysts’ estimates at $7.7 billion.

    Per EA, the “Madden NFL” franchise saw record net bookings for the year, up 6%, and double-digit growth in weekly average users for “Madden NFL 24” and “Madden Mobile.”

    Looking ahead to fiscal year 2025, EA expects net revenue between $7.1 and $7.5 billion. Net income is projected to be $904 million to $1.1 billion.

    For the first quarter of fiscal 2025 (which runs April 1-June 30 of this year), EA expects revenue of $1.58 to $1.68 billion and EPS of 73 to 90 cents. Net bookings are estimated between $1.15 and $1.25 billion.

    Those projections come in comparison to Q1 fiscal 2024, which benefited from the World Cup and the release of “Star Wars Jedi: Survivor.”

    “This year, EA delivered bigger, bolder world class entertainment that engaged and connected hundreds of millions of players and fans,” EA CEO Andrew Wilson said in a letter to shareholders. “We will continue to build on this strong momentum through an incredible pipeline of new experiences, starting with college football in FY25, positioning us for accelerated growth in FY26 and beyond.”

    EA CFO Stuart Canfield added: “EA’s FY24 was highlighted by record cash flow and strong earnings growth driven by ‘EA Sports FC’ and ‘Madden NFL.’ With strong conviction in our future, we are announcing an expanded stock repurchase program. We look forward to sharing more about our long- term strategy and financial framework at our Investor Day this fall.”

    EA stock closed Tuesday at $130.24 per share. The regular U.S. stock markets will reopen at 9:30 a.m. ET.

    Wilson, Canfield and other EA executives will host a conference call at 4 p.m. ET to discuss the quarter in greater detail.

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    Jennifer Maas

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  • Netflix Packs on More Than 13 Million Subscribers in Q4, Well Above Expectations

    Netflix Packs on More Than 13 Million Subscribers in Q4, Well Above Expectations

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    Netflix extended its lead as the world’s biggest premium video-streaming platform — gaining a better-than-expected 13.1 million subscribers for the fourth quarter of 2023. The company’s Q4 revenue came in slightly over Wall Street forecasts, while net income fell short.

    As of the end of 2023, Netflix counted 260.28 million total members globally.

    On average, analysts expected the company to report about 8.8 million net new subs for the period. Wall Street expected earnings per share of $2.22 on revenue of $8.71 billion, according to financial data provider LSEG (formerly known as Refinitiv).

    The Q4 earnings report comes after Netflix announced a blockbuster 10-year deal for WWE’s “Monday Night Raw” earlier in the day — the streamer’s biggest bet to date in live sports. Under the deal, Netflix will pay about $500 million annually to TKO Group for media rights in multiple territories starting in 2025 to “Raw” (currently on USA Network in the U.S.) along with other programming.

    Also Tuesday, Netflix garnered 18 Academy Awards nominations — the biggest tally among all studios — including seven for Bradley Cooper’s “Maestro” Leonard Bernstein biopic. That came after news that Scott Stuber, Netflix’s head of film, is exiting to launch a new media company.

    On the TV front, Netflix released 99 original seasons in Q4, down from a record high of 145 in the year-earlier period.

    Pictured above: Netflix’s dystopian thriller movie “Leave the World Behind” starring Mahershala Ali, Myha’la Herrold, Julia Roberts and Ethan Hawke

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    Todd Spangler

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  • Sony’s Movies, Music and Games Units All Grow Profitability in Second Quarter, as Group Earnings Wobble

    Sony’s Movies, Music and Games Units All Grow Profitability in Second Quarter, as Group Earnings Wobble

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    All three of Sony Group Corporation’s entertainment segments – film and TV, music and Games and network services – improved their profitability between July and September, the second quarter of the Japan and Hollywood conglomerate’s financial year.

    Group revenues increased by 8% in local currency terms to JPY2.83 trillion ($18.7 billion), compared with JPY2.75 trillion in the same quarter last year. But Sony’s financial services unit and its entertainment technology segment pulled down group sales and profitability.

    The group’s net after tax profits dropped a hefty 29% to JPY200 billion ($1.32 billion). That compared with JPY264 billion ($1.74 billion) in the equivalent quarter last year and JPY282 billion ($1.88 billion) in the April to June 2023 quarter.

    (Currency figures have been converted to US dollars at today’s prevailing rate of exchange, where US$1 = JPY151 and reflect the current extreme weakness in the Japanese yen.)

    The group also unveiled figures for the first six months of its financial year (April to September 2023). These showed revenues of JPY5.79 trillion, up 19% compared with JPY4.86 trillion, net income down 23% at JPY4.18 billion (compared with JPY482 billion), adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) down 15$ at JPY833 billion (compared with JPY901 billion) and its preferred new measure operating income before depreciation and amortization, also down 15% at JPY822 billion (compared with JPY882 billion).

    Sony’s ‘Pictures Division,’ which encompasses feature film, TV networks and television production, had a strong quarter, despite the twin Hollywood strikes, and reported increased sales and profits. Expressed in dollars, the division enjoyed revenues of $2.77 billion, which compared with $2.43 billion in the equivalent July to September period in 2022, and with $2.32 billion in the April to June first quarter. The division’s operating income was $204 million, which compared with $202 million in last year’s second quarter and with $115 million in this year’s first quarter. Adjusted OIBDA weighed in at $293 million for the quarter and $499 million for the April to September first half.

    Sony released four films theatrically during the July-September quarter, compared with three last year. They were: “Insidious: The Red Door” ($188 million worldwide gross box office); “Gran Turismo: Based on a Trues Story” ($114 million); “The Equalizer 3” ($157 million); and late-September release “Dumb Money” ($6 million in the period).

    In a subsequent conference call with financial analysts, Sony management recognized the ending of the writers’ guild and screen actors’ guild strikes. But they said that the ongoing impact of production disruption will continue through the remainder of the current financial year and warned of cost control measures in TV. The group’s adjusted guidance for the full year was unchanged at the sales level and down just 1% for OIBDA.

    The group shows five more theatrical releases for the current quarter: “Journey to Bethlehem,” “Thanksgiving,” “Napoleon,” “Anyone But You” and “The Book of Clarence.”

    The music segment saw sales increase from JPY359 billion to JPY409 billion. Much of this was due to positive impact of the weakness of the Japanese currency, though there were also gains for anime. Sector operating income increased from JPY79 billion to JPY81 billion. Adjusted OIBDA was JPY97 billion, compared with JPY88 billion. Sony increased its guidance for the sector’s full year profitability by 5%.

    The group’s top three recorded music products were Travis Scott’s “Utopia,” SZA’s “SOS” and Harry Styles’ “Harry’s House.” Doja Cat also enjoyed four weeks at the top of the Billboard charts with “Paint the Town Red.”

    The games and network segment saw sales leap, from JPY721 billion to JPY954 billion, helped by high value foreign revenues, increased hardware and software sales.

    Sector profits increased from JPY64.2 billion to JPY83.1 billion, despite a slowdown in profitability for the PlayStation5 console. For the full year, games profits now forecast to reach JPY385 billion, compared with last year’s recorded JPY250 million.

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