Home / Tech / Electronic Arts spikes as Apex Legends eyes China expansion and a new mobile app (EA)

Electronic Arts spikes as Apex Legends eyes China expansion and a new mobile app (EA)

Apex Legends Logo art

  • 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.

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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. 

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