Take-Two Financials: Everything's Coming Up (Digital) Roses

Take-Two Financials: Everything's Coming Up (Digital) Roses

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There are 10 next-generation titles on the go. Want to know what they are? You may have to wait a while ...

Take-Two's latest financial statement is out, and the publisher has the whole world on a plate; specifically that part of the world that Cvilization V: A Brave New World's Ghandi hasn't already conquered. Robust demand for digital content, including Borderlands 2, BioShock Infinite add-ons and, of course, Grand Theft Auto V, drove revenue from digital products up 85% year-on-year. Moreover each of its new entrants - BioShock Infinite, Borderlands 2, NBA 2K13, and Grand Theft Auto V - outsold any prior title in each of their respective franchises. Grand Theft Auto V alone sold more than 29 million copies; of the rest of the GTA franchise, only San Andreas comes close, with 22 million.

Take-Two's so bullish, it's increasing its financial outlook for the year. "Fiscal 2014 is poised to be a record year for our company," says chairman Strauss H. Zelnick, "with projected non-GAAP net revenue of $2.2 billion to $2.3 billion, and non-GAAP net income of $3.50 per share to $3.75 per share." Net revenue went up 340%, to $1.27 billion, in the second fiscal quarter, largely thanks to Grand Theft Auto V. Those are the kind of numbers that can turn any accountant's head, and Take-Two believes Rockstar will be responsible for about 70% of its overall 2014 earnings, with half of that being US domestic, half international.

But this is no time for resting on laurels. Take-Two's got all kinds of projects on the go, with THQ's Evolve going to the Left 4 Dead studio Turtle Rock, a just-now-created 2K Bay Area studio working on an unnamed next-generation title, and more than 10 unique titles for next-generation consoles. What titles, you ask? Wouldn't you like to know, but Take-Two promises reveals over the next few months.

"The need to deliver the highest-quality entertainment has never been more important," says president Karl Slatoff, "and we believe that consumers will continue to seek the most groundbreaking and immersive experiences as we enter the next generation for our industry."

Source: Take-Two via Seeking Alpha

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Considering the only recent stinker they've released was that Bureau/Xcom thing (which was more of a 'throw it out the door and and be done with it' deal) I'm not surprised.

Ed130:
Considering the only recent stinker they've released was that Bureau/Xcom thing (which was more of a 'throw it out the door and and be done with it' deal) I'm not surprised.

It is never too late to throw something out of the airlock!

Take-Two I think has more respect from the gaming community because they don't constantly 'broaden the appeal'. "Don't want our game, that's fine. We're going to have Gearbox keep up with the meat bicycles while sleeping on our GTA cash pile."

Of course giving us a 'real' Xcom makes them more agreeable to me as well.

Can someone explain to me how the only publisher who has good news across the board just had their stock nuked by 5% so far?

MCerberus:
Take-Two I think has more respect from the gaming community because they don't constantly 'broaden the appeal'. "Don't want our game, that's fine. We're going to have Gearbox keep up with the meat bicycles while sleeping on our GTA cash pile."

Of course giving us a 'real' Xcom makes them more agreeable to me as well.

Take-two broaden appeal by making more games in different genres, thats the way to go. Xcom is the perfect example, no one really liked the first person shooter one but they did a classic one as well so... you can choose to spend you money where you like and thus who cares good for everyone!

I wonder how the rockstar party is going. I imagine that their officers are just covered in alcohol, strippers and confetti. They'd clean it up, but then they would have to stop partying.

Take-Two has had a great year, haven't they?

So...... Civ 6 2014? Or is that too hopeful?

Yeah yeah, GTA 5, Borderlands 2 those are great, ok good for you, but neither are ones I'll stay up to 2:am with about trade agreements....

Karloff:
Take-Two's so bullish, it's increasing its financial outlook for the year. "Fiscal 2014 is poised to be a record year for our company," says chairman Strauss H. Zelnick, "with projected non-GAAP net revenue of $2.2 billion to $2.3 billion,

That's surprisingly little for a company so successful that it has some of the best-selling games of the year. Perhaps there isn't much money in gaming, after all?

Well, I guess the money is there, but it just gets split up among so many parties that each party's end-profit after expenses isn't that much.

sid:
Can someone explain to me how the only publisher who has good news across the board just had their stock nuked by 5% so far?

It's typical for companies that are doing well. Good news means that you sell the stock to take the profit from them doing well. Selling the stock makes the stock price go down.

It's just another indication that people don't actually invest in company anymore, rather than they "play the stock market" as it it were some kind of... game.

Josh12345:
So...... Civ 6 2014? Or is that too hopeful?

I think they could get another expansion out of Civ 5 yet.

 

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