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EA's holiday-quarter revenue forecast misses estimates

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EA's holiday-quarter revenue forecast misses estimates
FILE PHOTO: The Electronic Arts Inc., logo is displayed on a screen during a PlayStation 4 Pro launch event in New York City, U.S., September 7, 2016. REUTERS/Brendan McDermid/File Photo   -   Copyright  Brendan McDermid(Reuters)
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(Reuters) – Electronic Arts Inc <EA.O> forecast third-quarter revenue below Wall Street estimates on Tuesday, as the video-game publisher’s delayed launch of its popular “Battlefield V” game hurt the company in an already crowded holiday-season game slate.

The company forecast third-quarter adjusted revenue of $1.73 billion, below analysts’ average estimate of $2 billion, according to Refinitiv data.

EA and other game publishers, including rivals Activision Blizzard Inc <ATVI.O> and Take Two Interactive Software Inc <TTWO.O>, have been challenged by the rise of games from the “battle royale” genre such as “Fortnite”.

Activision and Take-Two have already launched the latest versions of their popular game franchises, such as “Call of Duty: Black Ops 4” and “Red Dead Redemption 2”, making it a competitive holiday season for EA.

EA’s net income was $255 million, or 83 cents per share, in the second quarter ended Sept. 30, compared to a loss of $22 million, or 7 cents per share, a year earlier.

On an adjusted basis, revenue was $1.22 billion, beating estimates of $1.18 billion.

In late August, EA said it would be delaying the launch of its highly anticipated ‘Battlefield V’ game by nearly a month to Nov. 20.

Due to the delay, the game publisher had cut its full-year adjusted revenue forecast to $5.20 billion from $5.55 billion.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta)

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