05-18-2018, 06:05 PM
Take-Two’s fortunes on the rise ahead of Red Dead Redemption 2 debut
<div style="margin: 5px 5% 10px 5%;"><img src="http://www.sickgaming.net/blog/wp-content/uploads/2018/05/take-twos-fortunes-on-the-rise-ahead-of-red-dead-redemption-2-debut.jpg" width="200" height="200" title="" alt="" /></div><div><p>The folks at Take-Two Interactive have <a href="http://ir.take2games.com/phoenix.zhtml?c=86428&p=irol-newsarticle&ID=2349458">published their financials</a> for the year ended March 31, 2018, and it appears the U.S. publisher had a good year fueled primarily by recurrent spending in games like <em>Grand Theft Auto Online</em>.</p>
<p>Notably, Take-Two reports $173.5 million (GAAP) in net income on $1.79 billion in net revenues for the year, which is just a bit more revenue and quite a bit more profit (roughly 158 percent more) than the company saw in the year prior, when it earned $67.3 million on $1.78 billion in revenues.</p>
<p>Recurrent consumer spending (think: sales of DLC, in-game currency, etc.) reportedly grew 63 percent to account for 42 percent of the year’s total net revenue, which is quite a bit more than the 26 percent of total net revenue it accounted for <a href="https://www.gamasutra.com/view/news/298599/Revenue_up_at_TakeTwo_as_key_franchises_deliver.php">last (fiscal) year</a>.</p>
<p>The big revenue-generators this year were, unsurprisingly, led by <em>Grand Theft Auto V </em>/ <em>Grand Theft Auto Online</em>, <em>NBA 2K17 </em>/ <em>NBA 2K18</em>, <em>WWE 2K18</em>, and <em>WWE SuperCard</em>. </p>
<p><em>GTA Online </em>was cited as an especially over-performing earner in the fourth quarter of the year, which actually came in a bit lower year-over-year. For just the three months ending March 31st, Take-Two reported $90.9 million in net income on $540.3 million in revenues, a bit less than the $99.3 million it earned on $571.6 million in sales it saw in the same quarter a year prior. </p>
<p>“During the fourth quarter, Take-Two delivered Net Bookings growth driven by increased recurrent consumer spending – including better-than-expected results from <em>Grand Theft Auto Online</em>,” stated company chief Strauss Zelnick in the earnings release. “<em>Grand Theft Auto Online </em>and <em>NBA2K</em> generated record results, exceeding our original expectations, and we benefited from strong ongoing sales of <em>Grand Theft Auto V</em> and other catalog titles.”</p>
<p>In the year ahead, the company aims to hit $180-$211 million in profits on $2.5-$2.6 billion in revenue, driven largely by recurrent spending and the debut of Rockstar Games’ <em>Red Dead Redemption 2 </em>in late October. </p>
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<div style="margin: 5px 5% 10px 5%;"><img src="http://www.sickgaming.net/blog/wp-content/uploads/2018/05/take-twos-fortunes-on-the-rise-ahead-of-red-dead-redemption-2-debut.jpg" width="200" height="200" title="" alt="" /></div><div><p>The folks at Take-Two Interactive have <a href="http://ir.take2games.com/phoenix.zhtml?c=86428&p=irol-newsarticle&ID=2349458">published their financials</a> for the year ended March 31, 2018, and it appears the U.S. publisher had a good year fueled primarily by recurrent spending in games like <em>Grand Theft Auto Online</em>.</p>
<p>Notably, Take-Two reports $173.5 million (GAAP) in net income on $1.79 billion in net revenues for the year, which is just a bit more revenue and quite a bit more profit (roughly 158 percent more) than the company saw in the year prior, when it earned $67.3 million on $1.78 billion in revenues.</p>
<p>Recurrent consumer spending (think: sales of DLC, in-game currency, etc.) reportedly grew 63 percent to account for 42 percent of the year’s total net revenue, which is quite a bit more than the 26 percent of total net revenue it accounted for <a href="https://www.gamasutra.com/view/news/298599/Revenue_up_at_TakeTwo_as_key_franchises_deliver.php">last (fiscal) year</a>.</p>
<p>The big revenue-generators this year were, unsurprisingly, led by <em>Grand Theft Auto V </em>/ <em>Grand Theft Auto Online</em>, <em>NBA 2K17 </em>/ <em>NBA 2K18</em>, <em>WWE 2K18</em>, and <em>WWE SuperCard</em>. </p>
<p><em>GTA Online </em>was cited as an especially over-performing earner in the fourth quarter of the year, which actually came in a bit lower year-over-year. For just the three months ending March 31st, Take-Two reported $90.9 million in net income on $540.3 million in revenues, a bit less than the $99.3 million it earned on $571.6 million in sales it saw in the same quarter a year prior. </p>
<p>“During the fourth quarter, Take-Two delivered Net Bookings growth driven by increased recurrent consumer spending – including better-than-expected results from <em>Grand Theft Auto Online</em>,” stated company chief Strauss Zelnick in the earnings release. “<em>Grand Theft Auto Online </em>and <em>NBA2K</em> generated record results, exceeding our original expectations, and we benefited from strong ongoing sales of <em>Grand Theft Auto V</em> and other catalog titles.”</p>
<p>In the year ahead, the company aims to hit $180-$211 million in profits on $2.5-$2.6 billion in revenue, driven largely by recurrent spending and the debut of Rockstar Games’ <em>Red Dead Redemption 2 </em>in late October. </p>
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