Electronic Arts (EA) has made some rapid progress with mobile games. With the mobile gaming market booming, there's a strong chance the EA should continue benefiting going forward. Let's see what moves EA is making to grow the business.
Moves in mobile
For its mobile portfolio, it’s now approaching a $500 million business with more than 130 million monthly active users. Its strongest titles, The Simpsons: Tapped Out, The Sims FreePlay, Real Racing 3 and FIFA 14, clearly demonstrate its approach for EA Mobile: engineered games as live services, designed to constantly evolve and keep players engaged long-term.
EA Mobile studios are preparing some exciting new experiences from its major brands this year, while also incubating and prototyping more new projects for the future. Through all of its plans for 2015, it’ll maintain its focus on building profitability across EA’s business for this year and beyond. Delivering quality experiences and executing on its plans are critical goals for it in 2015.
EA focuses on executing against three objectives that define a new EA; delivering amazing games and services to players around the world, driving innovation and creativity into new experiences, and building deeper relationships with its community.
It’s the number one worldwide publisher on new consoles with great games like Battlefield 4, FIFA 15, Madden NFL 25, Need for Speed Rivals and Titanfall.
It has a portfolio of hit mobile games and a strong plan for expansion. It has exciting new PC free-to-play opportunities around the world. It’s increasing profitability and investing in the future. Its digital products and services continue to grow and will account for more than 50% of its business in 2015.
EA is committed to putting its players first. This starts with creating amazing games and services fresh, fun experiences that connect, inspire, challenge and entertain players all over the world. In 2015, it’s planning new games for console and PC, new titles for mobile and new experiences through its live services.
Further, EA is continuing its partnership with Vince Zampella and the Respawn Entertainment team, building on its success in delivering Titanfall, the biggest interactive entertainment event of the year so far.
It’s also channeling innovation into its design processes, engineering new development and testing frameworks to enable each game it launches to perform at the scale of today’s gaming audience. With every game, every feature, every part of its live services, EA is innovating to pioneer the next generation of game experiences.
Finally, EA is also committed to continually engaging with its players and taking action, to ensure its delivering meaningful and positive EA experiences. The gamers are at the very center of its focus and it’s transforming how to connect, engage and act on their feedback. It’s connecting with these growing communities through dialogue and interactive content. It continues to prioritize and expand its capabilities in support to make help readily available to its players when needed.
The trailing P/E and forward P/E ratios of 1,358.08 and 16.12, respectively, indicate successful cost cutting efforts by the company. This further highlights the process improvement. The PEG ratio is very impressive at 0.80 and depicts healthy growth prospects of the company. However, the profit margin of 0.22% is dampening. The revenue per share and diluted earnings per share of $11.61 and $0.03, respectively, are weak. But, the most eye-catching figure here is the compounded annual growth rate per annum for the next five years impressively at 23.33%. Hence, investors looking to gain in the long-term should bet upon EA.