logo
Plus   Neg
Share
Email

Take-Two Posts Profit, Lifts FY Outlook - Update

Take-Two Interactive Software Inc. (TTWO) Tuesday posted a profit for the second quarter, as revenues grew 11%. The company lifted its full-year outlook driven by strong demand for its Red Dead Redemption 2 video game.

New York-based Take-Two reported second-quarter profit of $25.4 million or $0.22 per share, compared to last year's loss of $2.7 million or $0.03 per share.

Revenue for the second quarter grew 11% to $492.7 million from $443.6 million a year ago.

Analysts polled by Thomson Reuters expected earnings of $0.93 per share and revenues of $549.9 million. Analysts' estimates typically exclude one-time items.

Recurrent consumer spending, which includes virtual currency, add-on content and in-game purchases, grew 12% and accounted for 49% of revenues. The largest contributors to revenue were NBA 2K19 and NBA 2K18, Grand Theft Auto Online and Grand Theft Auto V, NBA 2K Online 2, Dragon City and Monster Legends, and WWE SuperCard.

Digitally-delivered net revenue grew 18% to $358.4 million, as compared to $302.9 million in last year.

"Take-Two delivered better-than-expected operating results, including growth in Net Bookings, during the fiscal second quarter," said CEO Strauss Zelnick. "This outperformance was driven primarily by Grand Theft Auto V and Grand Theft Auto Online, as well as the successful launch of NBA 2K19."

"As a result of our strong second quarter performance and outstanding early results from Red Dead Redemption 2, we are raising our financial outlook for fiscal 2019, which is also poised to be a record year for Net Bookings and Adjusted Operating Cash Flow," Zelnick added.

Red Dead Redemption 2 sold-in more units in its first 8 days than the original blockbuster Red Dead Redemption sold in its first 8 years and, as of today, the title has sold-in over 17 million units worldwide, the company reported.

Looking forward to the third quarter, Take-Two expects revenues of $1.10 billion to $1.15 billion and earnings of $0.31 to $0.41 per share.

Analysts currently estimate earnings of $2.59 per share and revenues of $1.35 billion.

For the full year 2018, the company now expects revenues of $2.55 billion to $2.65 billion and earnings of $1.73 to $1.98 per share. Previously, the company expected earnings of $1.45 to $1.70 per share and revenues of $2.50 billion to $2.60 billion.

Analysts currently estimate earnings of $4.73 per share and revenues of $2.85 billion for 2018.

TTWO closed Wednesday's trading at $125.81, $2.13 or 1.72%, on the Nasdaq. The stock further gained $4.64 or 3.69% in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
While reporting financial results for the first quarter, American Express Co. (AXP) on Thursday affirmed its earnings and revenue growth guidance for the full-year 2019. For fiscal 2019, the company continues to project earnings in the range of $7.64 to $8.14 per share and adjusted earnings in the... While reporting financial results for the first quarter, Honeywell international Inc. (HON) on Thursday raised its earnings and sales outlook for the full-year 2019. For fiscal 2019, the company raised its earnings outlook to a range of $7.90 to $8.15 per share from the previous guidance range of... Chipmaker Intel Corp. said it plans to exit the 5G smartphone modem business, with the announcement coming just hours after Apple Inc. and Qualcomm Inc. said they have settled their royalty dispute. The settlement includes a payment from Apple to Qualcomm, but no details were disclosed about the payment or fees. Qualcomm's shares are gaining more than 14 percent in Wednesday's trading session.
Follow RTT