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Take-Two Lifts FY Outlook, Shares Up 10%

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Shares of Take-Two gained over 10 percent in the after-hours trading on Tuesday after the video game publisher raised its full-year revenue guidance driven by better-than-expected second-quarter revenues and strong outlook for the rest of the year.

New York-based Take-Two reported second-quarter net loss of $2.74 million or $0.03 per share, compared to a profit of $36.43 million or $0.39 per share last year.

On an average, 20 analysts polled by Thomson Reuters expected earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew to $443.6 million from $420.2 million last year. Adjusted revenues rose to $577 million from $479.4 million last year. Analysts had a consensus revenue estimate of $510.31 million for the quarter.

Recurrent consumer spending, which includes virtual currency, add-on content and microtransactions grew 66% year-over-year and accounted for 48% of total net revenue. The largest contributors to net revenue were NBA 2K17, Grand Theft Auto Online and Grand Theft Auto V, WWE SuperCard and WWE 2K17, and XCOM 2, the company said.

Looking forward to the third quarter, the company expects adjusted revenues of $610 to $660 and loss per share of $0.35 to $0.25 per share. Analysts currently estimate earnings of $0.82 and revenues of $546.29 million for the third quarter.

For the full year, Take-Two now expects adjusted revenues of $1.93 to $2.03 billion and earnings of $0.55 to $0.80 per share. Analysts currently see earnings of $2.21 per share and revenues of $1.75 billion.

Previously, the company expected revenues of $1.65 to $1.75 billion and earnings of $1.00 to $1.25 per share.

TTWO closed Tuesday's trading at $106.39, down $0.61 or 0.57%, on the Nasdaq. The stock, however, rose $11.41 or 10.72% in the after-hours trade.

by RTT Staff Writer

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