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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
Proprietary Trading
1 Sep 14 16:07:40
$TTWO- May be setting up for a potential breakout. http://t.co/akgj1W8abB
James P Worthy
1 Sep 14 14:30:34
$TTWO Take-Two Interactive Software, Inc. (TTWO) Bulls Target Six-Year Highs http://t.co/79WFDvwS2F
Stock Signaling
1 Sep 14 09:01:03
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Companies in News
1 Sep 14 08:51:04
$TTWO: GameStop Profit Beats Estimates as Consumers Buy Consoles http://t.co/ngTrJkM4gH http://t.co/YbCPeTI8DA
Daily Contracts
1 Sep 14 08:15:01
Real-Time feed of company contracts, original agreements and executive updates from Take-Two Interactive $TTWO http://t.co/L0jdt8IOod
FonsieTrader
1 Sep 14 06:25:13
$TTWO Strong action with heavy volume, High Buying Pressure & Accumulation! Upside Breakout to watch http://t.co/pCSrCI0r4K
Don Fishback
1 Sep 14 04:50:24
1 Day Increase in ATM IV (Point change) $TTWO, $PNK, $SGMS, $ACAD, $TAL http://t.co/WnqNSrZdwk
OptionApps
1 Sep 14 04:50:24
1 Day Increase in ATM IV (Point change) $TTWO, $PNK, $SGMS, $ACAD, $TAL http://t.co/PwMGnoPTOY
Stock Signaling
31 Aug 14 21:01:23
Movers and Shakers: Making Range Advances: $OWW $TTWO $DATA $KOG $UTHR $SFUN $IAG $GRPN $FCEL $VIV $AVGO $XRX $ECYT $WDAY $MRO #wallstreet
Financial Headlines
31 Aug 14 20:51:04
$TTWO: Activision Launches All Console Diablo III???Ultimate Edition http://t.co/pUDBMAFOaA http://t.co/quPDkS3EqE
Ani Anirudhan
31 Aug 14 15:05:43
$TTWO on break out watch next week https://t.co/sBD2zbxt9B via http://t.co/k5g1NvFiU6
Stock Signaling
31 Aug 14 09:01:50
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Stock News Headlines
30 Aug 14 21:51:04
$TTWO: GTA Maker Take-Two Falls On Weak Revenue Outlook http://t.co/POq42VAb2p http://t.co/RPJfqK2mn8
Stock Signaling
30 Aug 14 21:01:51
Movers and Shakers: Making Range Advances: $OWW $TTWO $DATA $KOG $UTHR $SFUN $IAG $GRPN $FCEL $VIV $AVGO $XRX $ECYT $MRO $WDAY #stockpicks
Mohamud
30 Aug 14 19:52:34
Which stock will u buy $GLUU, $ZNGA, $TTWO, $COOL or $SOUL? Check out the best trade http://t.co/uIZAE2zpTP
Tom Strickland
30 Aug 14 14:00:59
RT @KeeneOnMarket: Maybe one of the "Takeover" Rumors will happen this weekend $TTWO $VFC $LULU
firstadopter
30 Aug 14 13:22:46
.@EventDrivenMgr I called it out in mid-2013 even before $TTWO invested later -> https://t.co/rs2f6yZCcn
Event Driven
30 Aug 14 13:17:56
@firstadopter u nailed this one. Ever since u flagged (9 mo ago?) have wished was investable or that $TTWO owned more of it. Great for $AMZN
KeeneOnTheMarket.com
30 Aug 14 11:52:44
Maybe one of the "Takeover" Rumors will happen this weekend $TTWO $VFC $LULU
Stock News Guru
30 Aug 14 10:51:04
$TTWO: Activision could make a play for Take-Two Interactive http://t.co/z0ZcTMdgpo http://t.co/eKyg2IdnIg
Pip
30 Aug 14 10:29:41
RT @firstadopter: $TTWO Rockstar rep says GTA V release date for PC has not changed in response to a rumor to the contrary https://t.co/Rp7…
Ralf the Destroyer
30 Aug 14 10:05:51
RT @firstadopter: $TTWO Rockstar rep says GTA V release date for PC has not changed in response to a rumor to the contrary https://t.co/Rp7…
Lewie Procter
30 Aug 14 10:04:28
RT @firstadopter: $TTWO Rockstar rep says GTA V release date for PC has not changed in response to a rumor to the contrary https://t.co/Rp7…
firstadopter
30 Aug 14 10:04:07
$TTWO Rockstar rep says GTA V release date for PC has not changed in response to a rumor to the contrary https://t.co/Rp7b9KcUNl
Business News Watch
30 Aug 14 09:51:04
$TTWO: Activision could make a play for Take-Two Interactive http://t.co/P9hOTak1Lx http://t.co/QPYzeIh4lW
Stock Signaling
30 Aug 14 09:01:58
Movers and Shakers: Making Range Advances: $OWW $TTWO $DATA $KOG $UTHR $SFUN $IAG $GRPN $FCEL $VIV $AVGO $XRX $ECYT $MRO $WDAY #daytrading
Auto Binary option
30 Aug 14 08:08:20
RT @KeeneOnMarket: $TTWO Take-Two Interactive Potential Takeover for Activision http://t.co/eIuNf5ofKu
KeeneOnTheMarket.com
30 Aug 14 08:05:41
$TTWO Take-Two Interactive Potential Takeover for Activision http://t.co/eIuNf5ofKu
Anthony
29 Aug 14 23:33:09
RT @WallStJesus: $TTWO Today's STEAM »» 10,000+ OCT $25 calls 78% ASK (IV=37.9% +9.9) OPENING
Anthony
29 Aug 14 23:32:47
RT @WallStJesus: 🔥TODAY'S UNUSUAL CALL VOL: $NBR $ATVI $PNK $TTWO $CSOD
Stock Signaling
29 Aug 14 21:01:35
Movers and Shakers: Making Range Advances: $OWW $TTWO $IVAN $DATA $KOG $UTHR $ASTI $SFUN $IAG $GRPN $FCEL $VIV $AVGO $XRX $ECYT #daytrader
Pete Skerritt
29 Aug 14 19:32:31
An $ATVI / $TTWO marriage? Oh, how interesting that would be! Not sure it happens, of course, but still. Interesting.
Patrick Seitz
29 Aug 14 18:09:26
Activision could make a play for Take-Two Interactive. http://t.co/Ovz0bRJMxd $TTWO $ATVI $EA
Me
29 Aug 14 17:48:52
RT @KeeneOnMarket: Take-Two Interactive Potential Takeover for Activision $TTWO http://t.co/eIuNf5ofKu
Companies in News
29 Aug 14 15:51:04
$TTWO: Take-Two Interactive Software Receives Consensus Recommendation of "Hold ... http://t.co/bRoADEwz74 http://t.co/5hAEEfR6wM
John Dianovich
29 Aug 14 15:38:11
$TTWO pops via the rumor mill. http://t.co/LzhCQbgUHS
Matt Fanning
29 Aug 14 15:20:58
RT @Barrons400: The Barron's 400 rose Friday, helped by gainers including Take-Two Interactive $TTWO and Synchronoss $SNCR . http://t.co/M…
Barron's 400 Index
29 Aug 14 15:16:51
The Barron's 400 rose Friday, helped by gainers including Take-Two Interactive $TTWO and Synchronoss $SNCR . http://t.co/MWeKmpraFp
DreadedRedbeard
29 Aug 14 14:52:26
Holding over the long weekend - $FB $GILD $DIS $TTWO $AAPL $XHUA
Cameron Ervin
29 Aug 14 14:49:52
Activision could make a play for Take-Two Interactive http://t.co/nzDKVA0P2i #IBDBlogs via @IBDinvestors $TTWO $ATVI $EA
Victor Zubarev
29 Aug 14 13:18:58
$TTWO #Take2Interactive 23.51 +1.05 on 5x normal volume OCT 25C B .65, A .70 +.47 VOL 13378, OI 4 ! @PaperTab
Biz News Pioneer
29 Aug 14 12:51:04
$TTWO: Activision could make a play for Take-Two Interactive http://t.co/3q3cQwqc20 http://t.co/oU7eDFkhp4
Ani Anirudhan
29 Aug 14 12:40:32
$TTWO upper BB close to B/O long setup into weekend http://t.co/XoNJOVzlqO
Kristian Davis
29 Aug 14 12:24:29
RT @KeeneOnMarket: Take-Two Interactive Potential Takeover for Activision $TTWO http://t.co/eIuNf5ofKu
Jesus Cryptos
29 Aug 14 12:14:52
RT @Bidnessetc: Take-Two Stock Rises On Speculation Of GTA Movie And Expected Activision Deal http://t.co/50VHhXbyie $TTWO $ATVI $EA
KeeneOnTheMarket.com
29 Aug 14 12:12:36
Take-Two Interactive Potential Takeover for Activision $TTWO http://t.co/eIuNf5ofKu
Bidness Etc
29 Aug 14 12:12:10
Take-Two Stock Rises On Speculation Of GTA Movie And Expected Activision Deal http://t.co/50VHhXbyie $TTWO $ATVI $EA
Clay Cooper
29 Aug 14 11:58:22
@jimcramer which is better to buy into during a possible acquisition, the buyer or buyee (if that's a word)? Like with $ATVI and $TTWO
Media Sentiment
29 Aug 14 11:54:50
$TTWO received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 269
Market Int Center
29 Aug 14 11:52:28
TakeTwo Interactive $TTWO Showing Bullish Technicals With Support At $22.11 ( http://t.co/hgZdCjJ3HR )
				
				
By  +Follow July 31, 2013 7:04AM
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