EA is making progress towards their strategy of building online communities, telling stories, and using social connection to drive growth. Their teams are delivering interactive entertainment and experiences that engage millions of people. They recently launched two highly anticipated sports games, Madden NFL 24 and EA SPORTS FC 24, which have been well received and are expected to drive growth. Madden NFL is a popular game that allows fans to connect and celebrate their passion for football. The latest installment has seen an increase in players and weekly average users.

During the quarter, Madden mobile saw significant growth in its player community and active users. EA SPORTS FC, a new global football ecosystem, was also successfully launched, setting new standards for authenticity, innovation, and social interaction. The ecosystem includes various games and a new esports program, and has been well-received by fans worldwide, with millions of players already participating. This launch demonstrates the success of EA's portfolio strategy to connect and expand the global football community.

EA is focused on accelerating creativity and innovation across platforms, expanding their football experiences, and collaborating with partners to grow FC as a cultural phenomenon. Their sports teams have delivered an unprecedented slate of content, with more releases planned for the rest of the fiscal year and beyond. They are also prioritizing their online communities and live services to lay a strong foundation for future growth. Through their games, people come together to celebrate their love of gaming and form lasting friendships. Apex Legends had a successful season in Q2, with improved monetization.

Respawn is focused on creating new and exciting content for players in the competitive gaming industry. The Sims 4 community is growing and Maxis is using data insights to create popular content. The team is also working on expanding the Sims universe. Battlefield 2042's Season 6 has been well-received, demonstrating the franchise's potential for success. Live services are a key part of the company's business strategy, with a focus on creating engaging and inspiring content for players. Despite global events and varying consumer outlooks, the company remains committed to delivering amazing games and services for players worldwide.

In the second quarter, EA saw strong growth in net bookings and EPS, with a focus on their largest opportunities in entertainment. They plan to continue investing in their biggest IP and building platforms to connect online communities and engage players through storytelling. Stuart Canfield then provided details on their Q2 performance, with net bookings exceeding expectations due to strong engagement and successful launches in the EA SPORTS portfolio. Live services accounted for 73% of their business, and the transition to EA SPORTS FC was a major success.

In the fourth quarter, EA saw a 41% increase in net bookings, driven by the success of FIFA 23 and the release of EA SPORTS FC 24. Apex Legends also performed well, with higher-than-expected net bookings due to Season 18. Overall, EA delivered a 1% increase in net revenue and a 37% increase in earnings per share. Operating expenses were lower than expected and there was a one-time non-cash tax benefit. The company also saw a record free cash flow of $2 billion and returned $376 million to shareholders. Full-year net bookings guidance remains unchanged.

EA expects healthy player engagement and low single-digit growth for EA SPORTS FC despite competition and volatile FX rates. Their full-year net bookings outlook and GAAP net revenue outlook remain unchanged, while operating expenses are lowered. They are increasing their GAAP earnings per share guidance and raising their operating cash flow guidance. Capital expenditures are expected to be lower due to real estate optimization, and free cash flow is expected to increase significantly compared to the previous year.

In the third quarter, EA expects net bookings to be down 4% to up 5% year-over-year, driven by new releases and strong player engagement. The company is committed to delivering high-quality experiences and investing in long-term growth. The definition of a game is expanding as more people engage with interactive experiences, and advancements in AI are changing the way games are made. This presents a significant opportunity for EA to reach a larger global audience.

The launch of EA FC was a big challenge for the company, but they are pleased with the results. They wanted this to be a symbol of change and the most authentic, immersive football experience ever. The teams have done an extraordinary job and the marketing has been successful in promoting the transition. There are always areas for improvement, but overall, they are proud of their achievements so far.

The company is pleased with the positive feedback and early performance of their franchise. They remain on track for low single-digit growth and have seen strong sales in the first four weeks of their live service business. However, they are being cautious as they head into Q3 and Q4. When asked about the pacing of sales for their latest game, the company is planning for both front-end loaded and longer tail outcomes. They have brought in new fans and players, but there are still many people playing the previous game.

The company is seeing a more organic transition between game launches, with a significant number of players still playing the previous game. They are working to bring these players over to the new game. The company expects a strong start for the current quarter, with consistent performance in the following quarter. The team behind Apex is creating engaging content and building a strong connection with their community, resulting in different types of content and chase mechanics in the game.

Andrew Wilson discusses the impact of transitioning to EA FC and the potential for partnerships and expansion of the franchise. The focus is on creating a football fan platform and moving quickly to meet the demands of the growing fan base.

The company's partnership structure and investments in development across various platforms are expected to yield results in the coming months and years. They are also working on optimizing their real estate strategy. The operating cash flow outlook has been increased by $250 million, but this is due to one-off benefits rather than a underlying improvement in their conversion.

The speaker discusses the success of FIFA engagement leading up to the launch of FC, and how the new FC play modalities, such as Pro, tactical mobile, and online, are expected to increase engagement and spending. They also mention the growth of the football fan community and the potential for FC as a platform, focusing on the number of players, time spent playing, and connections within the network.

The speaker discusses the company's strategy to expand its community of fans and create more opportunities for engagement across platforms, modalities, geographies, and business models. This has resulted in an overall increase in the size of the community and a longer seasonality of spend. They plan to replicate this strategy across their portfolio of games and IP. The next question is about the industry's resilience to recession.

The speaker was asked about the spending habits of consumers in the interactive entertainment industry and how it may be affected by potential economic volatility. They also discussed the success of the Madden franchise and plans for future growth. The speaker stated that the industry has been resilient in the past and that entertainment is a fundamental human need. They also mentioned that while there may be some softness in certain markets, overall there is still growth in the industry.

The speaker discusses the growth of the NFL and their partnership with the league for the Madden video game franchise. They mention the various game experiences and motivations for football fans, as well as their commitment to continue growing the business with the help of the NFL and the community. The speaker also expresses gratitude to their teams for a successful second quarter and looks forward to providing updates in the future.

This summary was generated with AI and may contain some inaccuracies.