Electronic Arts spikes as Apex Legends eyes China expansion and a new mobile app
- Shares of Electronic Arts, the creator of Fortnite competitor Apex Legends, surged as much as 9% on Wednesday after the company reported second-quarter results that blew past Wall Street expectations.
- Apex Legends is expected to generate between $300 million and $400 million in net booking in 2020, and EA also disclosed that between 8 million and 10 million people play the game each week.
- The video game producer is also planning to roll out Apex Legends in China and eventually worldwide with a mobile application.
- Watch Electronic Arts trade live.
Wall Street is getting excited about Apex Legends.
Shares of Electronic Arts - the company behind the hit Fortnite competitor - rose 7% in early trading on Wednesday after the company reported second-quarter earnings that beat estimates. EA also revealed that Apex Legends is expected to generate between $300 million and $400 million in net bookings next year.
Here are the key numbers:
- Net bookings: $743 million versus $719 million expected by analysts
- Revenue: $1.21 billion, up from $1.14 billion last year
- Earnings per share: $0.25 versus $.01 expected by analysts
The company saw net bookings from its live services games - which generate the bulk of EA's revenue - grow by 12% from the same period last year thanks to Apex Legends and Sims 4.
EA also said that Apex Legends has a consistent base of between 8 million and 10 million players per week, and the company is planning to expand the game into the growing esports industry.
"Apex Legends is going to be a major new addition to the global competitive gaming scene this year," Chief Executive Officer Andrew Wilson said during an earnings call. "Interest from teams, broadcast partners and sponsors is strong. "
The first official Apex Legends competition will take place this September with eight teams participating. EA is also planning to launch the game in China, and to release a mobile app worldwide.
In early July, EA released the second season of Apex Legends with the introduction of a new character, weapons, and in-game skins. The company said it plans to roll out more content throughout the summer, and Season 3 will begin next quarter.
Net revenue in 2020 is expected to be $5.37 billion, with profits of $2.8 billion.
EA is up roughly 19% year-to-date.
