Video-game publisher Take-Two Interactive Software Inc. (TTWO: Quote) said Wednesday that its second quarter net loss narrowed from last year, as revenue surged due to the success of "Borderlands 2" and catalog sales led by "Grand Theft Auto IV" and "Red Dead Redemption.
The company's quarterly earnings per share, excluding items, also breezed past Wall Street expectations as did its quarterly revenue.
However, the company forecast third quarter revenue and earnings well below analysts' current consensus estimates, and once again lowered its financial outlook for the fiscal year 2013.
Additionally, Take-Two said Rockstar Games plans to launch Grand Theft Auto V worldwide during spring 2013 for Sony Corp.'s (SNE) PlayStation 3 and Microsoft Corp.'s (MSFT) Xbox 360.
Strauss Zelnick, Chairman and CEO of Take-Two, said, "Our business continues to fire on all cylinders, led by terrific early results from 2K's NBA 2K13, and the outlook for our upcoming releases such as BioShock Infinite is stronger than ever. As a result, we continue to expect to deliver revenue growth and Non-GAAP profits in fiscal year 2013. Moreover, with Grand Theft Auto V slated for spring 2013, we are poised to generate substantial revenue and earnings growth in fiscal year 2014."
Take-Two shares are currently trading at $11.01, up 30 cents or 2.75%. U.S. stock markets reopened on Wednesday after closing for two days due to Hurricane Sandy. The company's shares trade in a 52-week range of $7.37 to $16.99.
Rival Electronic Arts Inc. (EA) on Tuesday reported a second quarter loss that widened from last year, as revenue declined. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, and its revenue matched analysts' estimate. At the same time, the company forecast third quarter revenue and earnings below analysts' current consensus estimates, and lowered its revenue and earnings outlook for the fiscal year 2013.
Video-game companies are searching for new avenues to improve their earnings as game shoppers are unwilling to buy the expensive video-games, amidst weak economy and high unemployment rate. The growing use of smartphones and tablets for gaming has also made a dent in the sales of these expensive video-games.
New York-based Take-Two, which publishes the blockbuster Grand Theft Auto series, reported a net loss for the second quarter of $12.5 million or $0.15 per share, compared to a net loss of $47.4 million or $0.57 per share for the year-ago quarter.
Excluding items, adjusted net income for the second quarter was $10.2 million or $0.11 per share, compared to an adjusted net loss of $39.4 million or $0.47 per share in the prior year quarter.
On average, 19 analysts polled by Thomson Reuters expected the company to report a loss of $0.18 per share for the second quarter. Analysts' estimates typically exclude special items.
Net revenue for the second quarter more than doubled to $273.1 million from $107.0 million a year ago, while adjusted net revenue surged 169% to $288.0 million from $107.0 million last year. Nineteen analysts had a consensus revenue estimate of $240.66 million for the second quarter.
2K launched Borderlands 2 last month. The title, which received rave reviews, has sold in over 5 million units to date, including strong digital sales, the company said Wednesday.
Looking forward to the third quarter, the company forecast adjusted net revenue of $325 million to $375 million and adjusted earnings of $0.45 to $0.60 per share. Analysts currently expect the company to earn $0.73 per share on revenue of $434.15 million for the third quarter.
For the fiscal year 2013, the company now forecasts adjusted net revenue of $1.10 billion to $1.20 billion and adjusted earnings of $0.00 to $0.20 per share. Previously, the company forecast adjusted net revenue of $1.70 billion to $1.80 billion and adjusted earnings of $1.75 to $2.00 per share.
Analysts currently expect the company to earn $1.94 per share on revenue of $1.78 billion for the fiscal year 2013.
The company noted that it was lowering its financial outlook to reflect its revised assumed release schedule.
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by RTT Staff Writer
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