Subscription opportunity gaining momentum
EA expects inflection points in its subscription business in FY19 and we suspect the company could soon include all new titles in its subscription offering for the first time. This would benefit revenue, digital mix and engagement, in our view. The stock could re-rate as the mix shift to a subscription model demonstrates EA's increasingly recurring revenue. Longer term, EA stands to meaningfully benefit from TAM expansion as cloud-based video game streaming gains traction.Electronic Arts develops, markets, publishes and distributes games, content and services that can be played and watched on a variety of platforms, including game consoles, personal computers, and mobile phones. The company markets and sells its games and services through digital distribution channels and through retail channels. Digitally, the company's console games and services can be purchased through third-party storefronts. In its games and services, the company utilizes brands that it either wholly own or license from others. The company develops and publishes games and services across genres. Within and alongside its games, the company provides live services, including in-game purchases, downloadable content, and esports.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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