Electronic Arts (EA) - Get Report is ready to push forward with mobile gaming, which generated $570 million in the fiscal year 2016, an aspect of its business it anticipates will benefit from the increasing availability of smartphones.
The Redwood Shores, Calif.-based video game maker said Tuesday that expansion of its mobile gameplay will help 2017 revenues reach a projected $4.9 billion. The projections for the coming fiscal year include $2.9 billion in digital revenue, which includes mobile as well as full-game downloads and downloadable add-ons for existing games. The company said it expected mobile to grow by 15%.
"We expect our mobile franchises to benefit from the continued expansion of iOS and Android, and we're continuing to see strength in PC gaming," CFO Blake Jorgensen said.
EA exceeded expectations Tuesday by reporting $924 million in revenue, far surpassing the expected $889 million for the fourth quarter, while pulling in $4.57 billion against expectations of $4.53 billion. The full-year revenue increased from $4.32 billion in 2015.
When taking questions from analysts on the conference call, management said there should be greater growth in the mobile space in the coming years and that EA would continue to leverage its existing popular titles on a mobile platform and also release games unique to mobile.
"Throughout the year, mobile players will see launches from some of our biggest brands," CEO Andrew Wilson said on a conference call with analysts. Building on the continued success of Madden NFL Mobile, we're excited to bring new EA Sports experiences from our NBA Live and FIFA franchises to players in [fiscal year] 2017."
The Madden NFL Mobile game's engagement in the fourth quarter increased 30% from the same time last year.
An upcoming release is Titanfall 2, a sequel to the initial third-person shooter Titanfall, which is scheduled to debut at the end of the year. FIFA 17, the latest installment of the soccer game, will likely be released in September, according to various gamingsites. Mass Effect: Andromeda, a third-person shooter science fiction title, is scheduled to be released in early 2017.