Electronic Arts Inc. (NASDAQ:EA) Q3 2023 Earnings Call Transcript

Page 5 of 11

Laura Miele : Hi Stephen! This is Laura. I’m going to take the Glu mobile question. As Andrew framed earlier, we still perceive the mobile market to be significant. It’s a $100 billion. It’s where Gen Z and Gen Alpha play. It’s the platforms they prefer. It’s also a significant platform in growth geographies around the world where we are looking to expand our franchises, so incredibly important market. And as it relates to Glu, we see the genres and markets in the shooter category, the sports category, the casual creation category where females primarily play. So €“ and of course the Glu content fits very well into these genres and these categories in the mobile market that are still growing and where we still see a strong connection.

Glu is fully integrated into EA and EA’s mobile teams now, and so as we think about our future of Sims, we of course consider Cabot Fashion Design Home as part of that ecosystem as Andrew has referenced. We think about tapped sports and the potential that we have globally around our sports business. Those are a meaningful part of our growth there. And we also have had some strong talent, some good tech have been integrated into our overall EA mobile business. So the integration and the transition has happened, and we really consider and look at the mobile business within EA in a very whole way.

Andrew Wilson: And then as we think about FIFA broadly, and more importantly as we think about FC and you think about the growth in that business. I think we should think about it on three vectors. The first vector of course is World Cup, and certainly we saw very strong growth in our business coincided with the World Cup. The good news about the World Cup, and we’ve been tracking this for many World Cups as you might imagine, is it’s not a moment in time. It actually establishes new fans and brings more people to football. And while we had some incredible matches during this World Cup and we saw, you know incredible final that pitted Messy versus Mbappe, you know what that does is establish a whole new set of fans for football on a go forward basis.

And so while certainly World Cup was a boost for us, we expected that will create an ongoing benefit over the course of time. The second part of the growth though, it wasn’t just about World Cup. It was the incredible titles that our teams launched, and certainly with what we did in the core FIFA franchise was our biggest and most innovative FIFA yet, with all that we did in and around FIFA Mobile, which was up triple digits, and all the new event content we put into FIFA online and how we really tied that community together into a global football ecosystem, you know interwoven into the fabric of football fandom, that’s a really important part of growth. And what we’re seeing now is that we have fans coming into the experience, not just about experiencing one event or one team or one league, but fans coming to experience really to share their love and passion for football with their fans, and really to put it on the line against their rivals.

Page 5 of 11