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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
Matt Landman
4 Mar 15 21:07:20
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Market Int Center
4 Mar 15 12:50:59
TakeTwo Interactive $TTWO Showing Bearish Technicals With Resistance At $26.46 ( http://t.co/RNUmePwt7u )
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4 Mar 15 12:48:57
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4 Mar 15 10:51:38
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Lucky Jimmy
4 Mar 15 10:51:16
$TTWO TTWO up -0.36% percent Today $TTWO Stock High is at 25.49 and the Low 25.03 with current volume of 367,979. Ta http://t.co/DXqNt3iUv5
Aldemaro Ribeiro
4 Mar 15 10:07:51
“@aldemaroribeiro: CORRECTION Bought $TTWO Calls Jun at close around 25.21”
Anthony
4 Mar 15 09:12:12
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4 Mar 15 08:58:56
RT @365daytrader: http://t.co/Nlg1yHg0jS Verified $3,861.85 profit in $TTWO Been vacationing...posting win/losses from past month
Profit.ly
4 Mar 15 08:58:40
RT @365daytrader: http://t.co/Nlg1yHg0jS Verified $3,861.85 profit in $TTWO Been vacationing...posting win/losses from past month
Jaime L.
4 Mar 15 08:55:38
http://t.co/Nlg1yHg0jS Verified $3,861.85 profit in $TTWO Been vacationing...posting win/losses from past month
Jaime L.
4 Mar 15 08:44:41
http://t.co/OqxsZnR9bn Verified $1,905.53 profit in $TTWO Been vacationing...posting win/losses from past month
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Chris Parekkaden
4 Mar 15 06:01:16
@firstadopter Haven't been keeping up with $TTWO recently, down 17% from high. Any issues there?
Cutlass
4 Mar 15 05:38:58
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Mother of Sin
4 Mar 15 05:25:31
$TTWO chart https://t.co/oqzEjioJWS I'm watching Take Two, Two Dollars from the MAR 24 Puts traded yesterday.
OptionsFlux
4 Mar 15 05:19:59
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Tom DiFrancesco
4 Mar 15 02:33:35
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4 Mar 15 00:32:09
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4 Mar 15 00:26:02
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Tech Stocks SA
4 Mar 15 00:19:22
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Long & Short Ideas
4 Mar 15 00:19:22
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Seeking Alpha
4 Mar 15 00:19:21
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Aldemaro Ribeiro
3 Mar 15 19:37:08
Bought $TTWO Puts Jun at close around 25.21
Anthony
3 Mar 15 19:16:43
RT @WallStJesus: $TTWO sweep 3800+ Mar15 $24 P 30¢
James Stockburger
3 Mar 15 17:10:12
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Shaun
3 Mar 15 14:51:43
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3 Mar 15 13:15:06
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Peter Bardens
3 Mar 15 13:03:01
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JE$US
3 Mar 15 12:53:03
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3 Mar 15 11:19:47
Commented on StockTwits: I wish you luck my friend, $TTWO has been a powerhouse the past few years, just needs a ... http://t.co/wSvR4CO5xP
John Spatta
3 Mar 15 11:03:06
What is $ttwo market cap minus cash?
Khush Raoh
3 Mar 15 10:33:06
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Benjamin West
3 Mar 15 09:33:12
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By  +Follow July 31, 2013 7:04AM
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