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Take-Two Narrows Loss, Plans for Release of Grand Theft Auto V and Other Blockbusters

By  +Follow July 31, 2013 7:04AM
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Keeping the theme of solid tech earnings for the latest quarter, Take-Two Interactive Software Inc. (TTWO) posted better-than-expected results after Tuesday’s closing bell as sales of Borderlands 2 and NBA2K13 rose.  Meanwhile, the game maker boosted its outlook for the current quarter and for the full fiscal 2014 year, ending March 31, 2014.

For the first quarter of fiscal 2014, the New York-based company posted net revenue of $142.7 million, down sharply from sales of $226.1 million in the year prior quarter that swelled on the release of Max Payne 3 and Spec Ops: The Line.  Take-Two didn’t have a major title release in the latest quarter.  Net loss from continuing operations for the quarter was $61.9 million, or 71 cents per share, versus a net loss of $110.8 million, or $1.30 per share, in the year prior quarter.  On an adjusted basis, which accounts for deferred revenue from certain games, discontinued operations and other special items, net loss narrowed to $47.1 million, or 54 cents per share, compared to $98.8 million, or $1.16 per share, in last year’s quarter.

Wall Street was expecting a larger adjusted loss of 66 cents per share on revenue of $131.8 million.

Sales from digitally delivered content expanded 128 percent year-over-year to account for more than half of all GAAP revenue.  The biggest contributions were made by three new digital expansion packs for Borderlands 2.  Catalog sales of older titles, such as the Borderlands and Grand Theft Auto franchises and Red Dead Redemption, made up 60 percent of adjusted net revenue.

Major upcoming releases for Take-Two include NBA 2K14 (featuring the debut of Lebron James on the cover) on October 1; WWE 2K14 (featuring Dwayne “The Rock” Johnson on the cover) on October 29; The Bureau: XCOM Declassified on August 20; and the much-anticipated release of Grand Theft Auto V on September 17.  Another upgrade pack for Borderlands 2 is also expected in the fall as well as the release of several games for Xbox One and PlayStation 4 once those next-generation gaming consoles debut later this year.

“Our better-than-expected first quarter results demonstrate that the market remains strong for the highest-quality interactive entertainment,” said Strauss Zelnick, chairman and chief executive of Take-Two.  “With Grand Theft Auto V launching on September 17th, followed by the releases of NBA 2K14 and WWE 2K14, fiscal 2014 is poised to be one of our best years ever,” he added.

Looking at the current quarter, the company sees non-GAAP net revenue between $750 and $800 million and adjusted profits between $1.25 and $1.35 per share.  Analysts were expecting earnings per share of $1.66 on sales of $818 million.

For the full fiscal year, Take-Two forecast non-GAAP net revenue in the range of $1.775 billion to $1.875 billion and earnings per share of $2.25 to $2.50.  This is up from the company’s prior guidance of profits between $2.05 and $2.30 per share.

Shares of TTWO ended the regular session Tuesday essentially flat at $16.99, but have climbed to $17.25 in extended trading with the earnings beat, although the soft second-quarter guidance moderated the gains.  Shares are up about 55 percent so far in 2013 and are sitting near their highest level in five years.  Shares have fought resistance at $17.55, hitting it in May 2011 and again two months ago to now challenge it yet again.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for TTWO
xraystocktrader
23 Nov 14 18:57:44
Evidence the Next Generation Grand Theft Auto V is Selling Well via @firstadopter http://t.co/2wJgbdRYbu $TTWO #GTAV
Eric
23 Nov 14 17:40:30
RT @_JohnWalsh_: 24/11/14 Long Watch List Part 5 $SWI $SWKS $SXL $SYMC $TASR $TQNT $TSM $TSO $TTWO $TUES $TXN $TXT $USB $VFC $VOYA $WAB $WE…
DennyT
23 Nov 14 16:50:44
TTWO Stock 26.89 Take-Two Interactive Software $TTWO Hit a 52 week high of 27.46 Closing the day 11/21/14 at 2 http://t.co/tRUyGY2TXX
ZOZO
23 Nov 14 15:01:15
$TTWO Barron's was neg on it this weekend
BlackCabbieTrader
23 Nov 14 14:54:58
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Daniel Ernst
23 Nov 14 05:25:35
Barrons says sell $TTWO too reliant on GTA (dated thesis see Red Dead, Bioshock, Borderlands, NBA and more) http://t.co/jFhbateGwK
TickerChirp
22 Nov 14 05:18:06
The Top in Twitter About $TTWO (Take-Two Interactive symbol TTWO) on 11/22/2014 http://t.co/zZnr3r4PJf
Daniel Ernst
22 Nov 14 04:59:06
Tis the season, Black Friday season $SNE $6758.jp $5930.JP $AAPL $ATVI $EA $TTWO $MSFT $BBY http://t.co/oWVKESEb4h
equities.com
22 Nov 14 04:03:42
Take-two Interactive Software Inc. (TTWO) Hits New 52-week High During November 21 Session $TTWO http://t.co/uzA9mk1Fj1
Shomik Ghosh
22 Nov 14 02:46:50
Growth names I like: $bmy, $gild, $ua, $dis, $tmus, $ttwo, $v, $icpt, $chkp, $sage, $ttm
Media Sentiment
21 Nov 14 12:49:58
$TTWO received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 364
Market Int Center
21 Nov 14 12:46:04
TakeTwo Interactive $TTWO Showing Bullish Technicals With Support At $26.33 ( http://t.co/Y4axV1qktP )
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21 Nov 14 11:25:37
5,604 usernames and passwords. $SNE $MSFT $TTWO RT @CNET DerpTrolling leaks PSN, 2K, Windows Live customer logins http://t.co/L81oYLfijr
Leigh Drogen
21 Nov 14 08:10:28
RT @KevinHavas: The discrepancy between publisher earnings $EA $ATVI $TTWO and $GME earnings tells the whole story. The company is doomed.
Kevin Havas
21 Nov 14 08:10:08
The discrepancy between publisher earnings $EA $ATVI $TTWO and $GME earnings tells the whole story. The company is doomed.
Horacio
21 Nov 14 06:43:17
@JorgeOrihuela27 killing it! What did you get $TTWO at ?
Detroit Bear
21 Nov 14 06:42:41
Easily my best year in short-term 6-12 month trading. Two mistakes? Not letting a winner ride $TTWO. $SHPG risk arb worked out pretty poorly
Dathan Pyle
20 Nov 14 15:17:31
$GME blaming $UBI for Q3 Miss. They did note that other major products performed very well though. $ATVI $EA $TTWO http://t.co/Zt1ZvDwoAe
Corey Tynes
20 Nov 14 14:56:04
$TTWO Soooo pissed I didn't buy at 21!!! This is an abso gold mine....next pull back I'm hopping in
Ismael Tillawi
20 Nov 14 13:38:02
RT @CoryTV: BREAKING: Gamestop new software sales fell 34% yoy. Having GTA V & Battlefield 4 a year ago hurt comps. $GME $TTWO $EA
VASComm Ltd.
20 Nov 14 13:38:02
RT @CoryTV: BREAKING: Gamestop new software sales fell 34% yoy. Having GTA V & Battlefield 4 a year ago hurt comps. $GME $TTWO $EA
Cory Johnson
20 Nov 14 13:31:49
BREAKING: Gamestop new software sales fell 34% yoy. Having GTA V & Battlefield 4 a year ago hurt comps. $GME $TTWO $EA
Confucius Trades
20 Nov 14 13:09:41
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Cory Johnson
20 Nov 14 11:47:14
Virtual Hooker Sex: Is Grand Auto Theft V Over the Line?: Video - Bloomberg http://t.co/CArO1o8nYd $TTWO
Scott Fraser
19 Nov 14 20:44:47
$TTWO Has been a locomotive for the last year. Still undervalued.
Confucius Trades
19 Nov 14 18:55:55
$TTWO $ATVI Take Two CEO Says Gaming Isn't Ready For VR http://t.co/CGEtlbZSH0 via @NewsRepublic
NASDAQ
19 Nov 14 13:16:53
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/MNhGUY75X6
$Stocknewsalerts
19 Nov 14 13:16:24
$TTWO ALERT: New Take-Two Interactive Software, Inc. SEC Filing From our Stock News Alerts App
john smith
19 Nov 14 13:16:10
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/xA61yBXYJV
Andy L.
19 Nov 14 12:25:13
RT @_JohnWalsh_: 19/11/14 Long Watch List Part 3 $NWL $PDCO $PEI $PGR $PL $PLL $QVCA $RCL $RHI $RHT $SNE $SPR $SWKS $TEVA $TQNT $TTWO $TXN …
Dathan Pyle
19 Nov 14 12:06:39
Gamestop ( $GME ) reports Q3 earnings tomorrow. This could also move $SNE $MSFT $ATVI $EA $TTWO and $UBI http://t.co/l68REjy9wY
Jake13
19 Nov 14 06:56:36
TTWO Year to date has changed +55.61% percent. +25.60% in the last 30 days. $TTWO Take-Two Interactive Softwar http://t.co/mCRXc6fqQx
Jake13
19 Nov 14 06:56:08
$TTWO TTWO Year to date has changed +55.61% percent. +25.60% in the last 30 days. $TTWO Take-Two Interactive Softwar http://t.co/OgqGyvWrNi
Large Void Bot
19 Nov 14 06:32:33
New 52wk Highs: $ABC $CAG $LM $TTWO $VFC
Roberee
19 Nov 14 06:16:30
$GME $TTWO Irony --> LINE OF GAMERS CAMPING OUT FOR GTA RELEASE ROBBED. http://t.co/rLr5vTzWp1
4-traders.com
19 Nov 14 05:05:07
Take Two Interactive Software : Double Take Brings Back the Dead – Reveals New Graphic Fiction Titles... http://t.co/krfJn6gry8 $TTWO
$Stocknewsalerts
19 Nov 14 05:03:37
$TTWO Double Take Brings Back the Dead - Reveals New Graphic Fiction Titles Set in the World of the Classic F From our Stock News Alerts App
john smith
19 Nov 14 05:01:22
$TTWO - Double Take Brings Back the Dead – Reveals New Graphic Fiction Titles Set in the World of the Classic http://t.co/NrGcxgy8AE
NASDAQ
19 Nov 14 05:01:16
$TTWO - Double Take Brings Back the Dead – Reveals New Graphic Fiction Titles Set in the World of the Classic http://t.co/8SAWnRa3Kq
equities.com
19 Nov 14 03:35:45
Take-two Interactive Software Inc. (TTWO) Hits New 52-week High During November 18 Session $TTWO http://t.co/iVncuYWUOF
A. Vespasian
18 Nov 14 23:33:03
RT @_JohnWalsh_: 19/11/14 Long Watch List Part 3 $NWL $PDCO $PEI $PGR $PL $PLL $QVCA $RCL $RHI $RHT $SNE $SPR $SWKS $TEVA $TQNT $TTWO $TXN …
Stephanie Ruhle
18 Nov 14 19:28:49
RT @WrigleyTom: CEO of $TTWO (stock at ATH's) calls Grand Theft Auto "Gritty Underworld Art" s/w @SRuhle & talks Future Trends Link http:…
Tom Wrigley
18 Nov 14 19:22:12
CEO of $TTWO (stock at ATH's) calls Grand Theft Auto "Gritty Underworld Art" s/w @SRuhle & talks Future Trends Link http://t.co/8asVO27kow
BlackCabbieTrader
18 Nov 14 16:56:50
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Carlos
18 Nov 14 16:36:08
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Daniel Ernst
18 Nov 14 15:39:08
$TTWO sure enough GTAV jumps to the top on @Twitch http://t.co/XxPpqxMXGz
chartseer
18 Nov 14 15:02:26
@StockBoardAsset $TTWO 1st close above 50sma http://t.co/4lnJ3IZuzp
Samuel Brown
18 Nov 14 14:01:53
$TTWO Take-Two Interactive Software Hits New 1-Year High at $26.82 (TTWO) http://t.co/lFcscYvfiF
John Turner
18 Nov 14 14:01:51
$TTWO What to Watch for When Take-Two Interactive Software Inc. Reports Earnings http://t.co/56Ihekqt1c
$Stocknewsalerts
18 Nov 14 13:14:51
$TTWO ALERT: New Take-Two Interactive Software, Inc. SEC Filing From our Stock News Alerts App
				
				
By  +Follow July 31, 2013 7:04AM
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