Electronic Arts Ends Fiscal 2022 With Decent Q4; Loss of FIFA License Will Have Minimal Impact

Electronic Arts posted a decent end to fiscal 2022 as bookings met and adjusted EBITDA beat FactSet consensus expectations. Even with strong bookings growth of 18%, the continued weak performance of Battlefield 2042 remains a drag on the top line that we expect to linger through fiscal 2023. The firm announced that the long-expected divorce with FIFA will happen for the 2024 edition of the game, to be released in the fall of 2023 and retitled as EA Sports FC. We expect minimal impact from the renaming as long as the game retains its other major licensing agreements. We keep our $142 fair value estimate.