Take-Two Interactive Software Inc., the renowned video game publisher behind popular franchises like “Grand Theft Auto,” “Red Dead Redemption,” “Borderlands,” and “NBA2K,” encountered hurdles in the extended session on Tuesday. The company revealed disappointing results and revised its outlook, leaving investors uncertain. However, Take-Two didn’t miss the opportunity to remind gamers eagerly awaiting the next iteration of “Grand Theft Auto” that their patience will soon pay off.
Second-Quarter Forecast and Analyst Expectations
Take-Two anticipates a loss of $1 to 90 cents per share for the second quarter, with projected revenue ranging from $1.26 billion to $1.31 billion. They also expect net bookings between $1.4 billion and $1.45 billion. Analysts, on the other hand, predict an unadjusted 70 cents per share loss, higher revenue at $1.4 billion, and net bookings around $1.48 billion.
Revised Annual Outlook
The company revised its annual forecast, expecting a loss between $3.20 and $2.95 per share. This downward adjustment is attributed to a previous projection that ranged from $3.05 to $2.80 per share. Remarkably, despite the altered figures, revenue remains unchanged at $5.37 billion to $5.47 billion, along with net bookings projected at $5.45 billion to $5.55 billion. For fiscal year 2024, market analysts anticipate an unadjusted loss of $2.61 per share, revenue of approximately $5.51 billion, and net bookings totaling $5.56 billion.
Strategic-Focus Areas and High Expectations
Strauss Zelnick, Take-Two’s chairman and chief executive, informed stakeholders that they are making significant progress in strategic-focus areas. This includes the highly anticipated development pipeline, revenue-driven opportunities, and synergies. Zelnick also acknowledged the level of excitement surrounding the forthcoming “GTA VI” release.
Prospects for Fiscal 2025
Despite the current setbacks, Zelnick maintains confidence in positioning the company for a significant inflection point in fiscal year 2025. They firmly believe that this period will witness new record levels of operating performance, providing reassurance to investors regarding the future prospects of Take-Two Interactive Software Inc.
Take-Two Reports Strong First Quarter Results
In the fiscal first quarter, Take-Two saw significant growth with total net revenue reaching $1.28 billion compared to $1.1 billion in the same period last year. Despite reporting a loss of $206 million, or $1.22 a share, Take-Two’s performance surpassed expectations.
Analysts had estimated an unadjusted loss of $1.22 a share on revenue of $1.35 billion and net bookings of $1.34 billion. Take-Two had originally projected a loss of $1.27 to $1.17 a share on revenue of $1.34 billion to $1.39 billion, and net bookings of $1.31 billion to $1.36 billion.
GTA 6: Highly Anticipated New Release
Investor and gamer excitement is reaching new heights as the highly anticipated sequel to the immensely successful “Grand Theft Auto V” is finally confirmed after more than a decade. The franchise has already accumulated over $6 billion in sales since its initial release on Sept. 17, 2013.
Positive Market Response
Take-Two’s shares saw a 2% increase after hours, following a slight decline of 0.7% during the regular session, bringing their year-to-date gains to 34.6%. In comparison, rival company Electronic Arts Inc.’s shares have only increased by 0.4%.
Industry Developments
In other industry news, Microsoft Corp. has been granted a three-month extension to complete its acquisition of Activision Blizzard Inc., giving them more time to address antitrust concerns. Additionally, Electronic Arts Inc.’s recent earnings report and forecast led to a decline in their shares earlier this month.
Overall, Take-Two’s strong performance in the first quarter and the announcement of “Grand Theft Auto VI” have generated excitement and positive momentum in the gaming industry.
