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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
Tickers Mentioned:

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.

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Results for TTWO
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3 Jul 15 03:36:39
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Rosner Stocks
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HS Stock Trader
2 Jul 15 16:45:21
2 Jul 15 11:19:04
$TTWO: Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Stock Rating ...: http://t.co/VdAlIq0hhI
Harry Walkman
2 Jul 15 11:06:25
$TTWO Is Take-Two Interactive Software, Inc. 2K's Mafia 3 On the Way? http://t.co/kcLFNfYH50
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2 Jul 15 08:39:23
Stick to your t's! $TSLA $T best performers these days. Maybe $TTWO but not quite in the same bucket, despite the T $LONG
2 Jul 15 08:25:29
NASDAQ Movers of Yesterday: http://t.co/IhhdCDmDlo $TTWO $NETE $ILMN $LBTYA
Analyst Actions
2 Jul 15 08:18:01
$TTWO: Analyst action by Mizuho Securities on Take-Two Interactive: http://t.co/a5MZYgSxUr http://t.co/RCuftaAfvq
Media Sentiment
2 Jul 15 07:22:45
$TTWO received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 154
2 Jul 15 07:20:18
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Vetr Ratings
1 Jul 15 22:41:42
Vetr users have upgraded Take-Two Interac... to a BUY Rating (3.5 stars), giving $TTWO a target price of $32.30 http://t.co/8mbuHu2vmZ
Mr. Digip
1 Jul 15 14:06:23
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1 Jul 15 13:19:02
$TTWO: GTA 5 to Celebrate July 4 With In-Game Promotions, Events: http://t.co/wE6hvSjIdH
1 Jul 15 13:12:02
$TTWO: This non-gamer runs one of the world's biggest video game ...: http://t.co/5HKkcGQ3lm
Justin Pulitzer
1 Jul 15 08:15:51
$TTWO update… LOD is a good ref stop if long.
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The Legacy News
1 Jul 15 05:13:57
Take-Two Interactive Software Price Target Raised to $37.00 $TTWO http://t.co/C6th2AQKsw
Tiffany Scott
30 Jun 15 20:54:04
RT @MrDigip: @davidein Why doesn't $TTWO publish a quarterly preso that includes a rolling release pipeline? Maybe it's time to do so? @st…
John Ablemann
30 Jun 15 15:34:44
$TTWO Is Take-Two Interactive Software, Inc. 2K's Mafia 3 On the Way? http://t.co/mdywMaKsdk
Tech Stocks
30 Jun 15 14:30:04
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Bidness Etc
30 Jun 15 12:51:58
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Mr. Digip
30 Jun 15 09:11:43
@davidein Why doesn't $TTWO publish a quarterly preso that includes a rolling release pipeline? Maybe it's time to do so? @strausszelnick
Analyst Actions
30 Jun 15 09:00:01
$TTWO: Bullish analyst action by Jefferies on Take-Two Interactive: http://t.co/T7n0PkBWQO http://t.co/Hwz3l1prES
Mr. Digip
30 Jun 15 08:50:18
@davidein $TTWO Weed out (shut down) the weak IPs and accelerate (reduce) the TTM for the strong (GTA, Red Dead, Borderlands & NBA 2K).
Stock Trade Alerts
30 Jun 15 08:15:37
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StockWatch App
30 Jun 15 07:23:51
$TTWO - Analysts' Recent Ratings Changes for Take-Two Interactive Software http://t.co/PcnyMAShLX
Chad Henage
30 Jun 15 05:49:33
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30 Jun 15 05:26:02
$TTWO: Ascendiant Capital Markets Increases Take-Two Interactive ...: http://t.co/eDHAA3oOOv
Clint Allen
30 Jun 15 04:07:21
Take-Two Interactive Software's PT raised by Ascendiant Capital Markets to $37.00.buy http://t.co/61focLtcQn $TTWO #TTWO via @RatingsNetwork
30 Jun 15 01:29:02
$TTWO: Take-Two Interactive Software (NASDAQ:TTWO) Had It's Price ...: http://t.co/Fa8S0CjDJs
Vetr Ratings
30 Jun 15 00:46:22
Vetr users have upgraded Take-Two Interact... to a HOLD Rating (3 stars), giving $TTWO a target price of $31.42 http://t.co/8mbuHtKTYp
Dakota Financial
29 Jun 15 23:09:20
Analysts’ Recent Ratings Changes for Take-Two Interactive Software $TTWO http://t.co/1zBOZHCldE
29 Jun 15 23:04:03
$TTWO: Analysts' Recent Ratings Changes for Take-Two Interactive ...: http://t.co/zNq1aYfZb5
Ticker Report
29 Jun 15 22:59:33
Analysts’ Recent Ratings Changes for Take-Two Interactive Software $TTWO http://t.co/ugodIFHrWR
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29 Jun 15 15:42:41
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Analyst Actions
29 Jun 15 14:39:02
$TTWO: Analyst action by Mizuho Securities on Take-Two Interactive: http://t.co/a5MZYgSxUr http://t.co/Ag0vdgvb3Z
Breaking News Now
29 Jun 15 14:35:34
$TTWO: What's The End Game For Take-Two Interactive?: http://t.co/xwtqJxBieA
By  +Follow July 31, 2013 7:04AM



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