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Take-Two Profit Surges, Shares Rise - Update

Take-Two Profit Surges, Shares Rise - Update

Video-game publisher Take-Two Interactive Software Inc. (TTWO: Quote), Tuesday reported a surge in third-quarter profit, as revenues soared on the launch of "NBA 2K13", along with continued demand for "Borderlands 2." Revenues were also boosted by catalog sales led by "Grand Theft Auto IV" and "Red Dead Redemption."

Take-Two, which publishes the hit Grand Theft Auto series and the Midnight Club racing series, also lifted the low-end of its full-year financial guidance.

Take-Two, which owns 2K Games and Rockstar Games, said revenues for the quarter surged to $415.8 million from $236.3 million last year. Analysts estimated revenues of $361.94 million for the period.

Commenting on the results, Chief Executive Strauss Zelnick said, "Our results benefited from the record-breaking launch of NBA 2K13, along with continued strong demand for Borderlands 2, the successful launch of XCOM: Enemy Unknown, and robust holiday sales of our catalog and growing portfolio of digitally delivered offerings."

Take-Two has sold nearly 4.5 million units of NBA 2K13 to date.

New York-based Take-Two's third-quarter profit surged to $71.4 million or $0.66 per share from $14.1 million or $0.16 per share last year.

On an adjusted basis, earnings rose to $0.67 per share from $0.27 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.

Looking forward to the fourth quarter, the company expects adjusted earnings of $0.10 to $0.25 per share and adjusted revenues of $235 to $285 million. Analysts currently expect earnings of $0.36 per share on revenues of $303.36 million.

For the full year, the company now expects adjusted earnings of $0.05 to $0.20 per share on revenues of $1.15 billion to $1.20 billion. Analysts currently expect earnings of $0.15 per share on revenues of $1.18 billion for the full year.

Previously, Take-Two expected adjusted earnings to be between breakeven and $0.20 per share on revenues of $1.10 billion to $1.20 billion.

Take-Two also authorized the repurchase of up to 7.5 million common shares.

TTWO closed Tuesday's trading at $12.66, up $0.15 or 1.20%, on the Nasdaq. The stock further gained $0.77 or 6.08% in after hours.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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