Take-Two disclosed its financial performance for the third fiscal quarter, concluding on December 31. Despite a slight decline in sales and bookings, the company surpassed its projections and recorded its smallest quarterly net loss since acquiring Zynga in May 2022.
Here are the key points:
Financial Figures:
Net revenue: $1.37 billion (down 3% year-over-year)
Net loss: $91.6 million (compared to $153 million in the same quarter last year)
Total net bookings: $1.34 billion (down 3% year-over-year)
Highlights:
Grand Theft Auto 5 and Online, Red Dead Redemption, and Zynga’s titles exceeded expectations.
NBA 2K experienced a setback, particularly with “softness” in NBA 2K24 sales affecting recurrent consumer spending.
NBA 2K24 sold 7 million units, compared to approximately 8 million units for NBA 2K23 at a similar point in its lifecycle.
Take-Two CEO Strauss Zelnick, emphasized NBA 2K24’s long-term prospects, attributing current sales dynamics to a transition to newer gaming platforms.
Grand Theft Auto 5 achieved 195 million units sold, with a significant rise in new Grand Theft Auto Online accounts during the holiday season.
Red Dead Redemption 2 reached 61 million units shipped.
Zelnick expressed optimism regarding mobile performance and the successful launches of Zynga’s Top Troops and Match Factory.
Zelnick noted a changing trend in mobile game launches, citing positive market response and consumer rebound.
Take-Two initiated another “cost reduction plan” to enhance operational efficiency ahead of upcoming game releases.
Despite surpassing third-quarter expectations, the company revised its full-year guidance to $5.25 billion – $5.3 billion, citing factors like NBA 2K24’s performance and challenges in the mobile advertising business. A planned fourth-quarter release delay and increased marketing spending on Match Factory contributed to the guidance adjustment.
