TheGamingEconomy’s Daily Digest brings you the prevalent business stories in gaming. In today’s news: EA posts record quarterly results; Fnatic expands OnePlus partnership; and Mogul net operating cash flow falls by 35%.
EA posts record quarterly results
Electronic Arts (EA) has posted its results for the quarter ending June 30th, with revenue climbing by 21% year-over-year to a company-record USD$1.46bn (£1.12bn), despite only releasing two titles during the period, both of which were remasters of existing IP. The revenue growth was driven by a surge in live services and other revenues, with this segment generating USD$1.1bn (£844m) during the period, up by USD$416m (£319m) from the previous quarter.
On the earnings call discussing the results, EA CFO Blake Jorgensen also revealed that the company’s executives are “more interested than ever” in purchasing acquisitions, however he also appeared to dispel suggestions EA is considering a bid for Warner Bros. Interactive Entertainment, should AT&T decide to sell the division, as they are not necessarily targeting studios based on their portfolios. Jorgensen said, “As you’ve seen in the past, where we’ve done the best is where we have long-term relationships with people and we’re really trying to buy great talent versus games. I think Respawn is a classic example of that. We were able to bring them into the fold and give them incredible support and it was all driven by the fact that they have incredible talent. It wasn’t about Titanfall – no offence to Titanfall. It’s an amazing game and maybe you’ll see Titanfall some time down the road. But it was really about the team.”
At the close of trading, Electronic Arts Inc. (NASDAQ: EA) share price stood at USD$138.59 (£106.38), up by 1.96% from the previous close.
Fnatic expands OnePlus partnership
London-based esports organisation Fnatic has announced that it has renewed its partnership with smartphone manufacturer OnePlus. As well as the smartphone marque continuing to feature on the team’s jerseys, along with Fnatic Mode integrated on OnePlus devices, the deal has been expanded to see the two firms scout for “mobile talent” across Europe and North America. Fnatic has also announced that it will debut a North American team in the Call of Duty Mobile World Championship.
Commenting on the collaboration, Eric Gass, Director of Global Brand Partnerships at OnePlus, wrote, “A leader in performance and hardware, OnePlus is committed to working with Fnatic and gamers alike, to deliver the best smartphones for mobile gaming. We believe that mobile gaming is the future and through the renewed partnership, OnePlus strives to equip players around the world with the tools necessary to advance their gameplay.”
Mogul net operating cash flow falls by 35%
Australian esports media and software company Mogul, best known for its Mogul.gg tournament platform, has announced that it saw a 35% quarterly reduction in its net operating cash flow during the quarter ending 30th June 2020, falling to AUD$489,000 (£268,840). However, the company also saw customer receipts climb by 134% from the previous quarter to AUD$61,000 (£33,536). Mogul will be undertaking a review of its spending to ensure that it does not need to seek equity funding given the current global financial market.
The quarterly business review reads, “With COVID-19 making in-person esports events and tournaments untenable for the foreseeable future, Mogul has been promoting its platform as an all-online solution[…] The company continues to receive significant inbound interest as a result of the pandemic related travel and gathering restrictions, and is well placed to attract and support companies, publishers and advertisers in establishing a presence on Mogul.”