Take-Two losses exceed forecast while GTA 5 reaches 170 million copies sold

According to CEO Zelnick, the company has the best collection of owned intellectual property in the business.
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Take-Two Interactive shared its earning report for the second quarter of 2022. The video game giant reported $1.4 billion in revenue, up 62% year-over-year, and $1.5 billion in bookings, up 53% year-over-year. The company also reported a net loss of $257 million.

Related:Take-Two Interactive finally completes Zynga acquisition

Take-Two changed its outlook for the full fiscal year ending March 31, 2023. Foreign currency exchange rates, shifts in the product pipeline, and the impacts of the greater economy were among the reasons the company listed.The full-year GAAP revenue forecast went from $5.73-$5.83 billion to $5.4-$5.51 billion, and the full-year GAAP net loss forecast went from $398-$438 million to $631-$674 million.

Take-Two Interactive Chairman and CEO Strauss Zelnick commented,

“It was a great, solid quarter. It’s a somewhat disappointing outlook for the year. However, that’s not surprising given the economic backdrop and our expectations for the macroeconomy. And we remain in terrific shape with 87 titles coming between fiscal ’23 and fiscal ’25, and expectations that we’re going to generate sequential growth in those years and record results.”

According to Take-Two executive VP of Finance Hannah Sage, the drastic difference between the $257 million net loss and the forecasted range of $144 million to $160 million was due to a revaluation of intangible assets that came over in the Zynga acquisition.

With the Zynga acquisition, Take-Two’s revenue mix was shifted even further into digital. The company saw only 6% of bookings for the quarter from physical retailers, compared to 11% from a year ago.

Zelnick added;

“75% of our net bookings on the console side are now digitally delivered. I’ve been asked repeatedly over the years what that percentage will look like in five years, and I say 100%. You can still sell hardware at retail, you can still sell digital codes and Shark Cards at retail, but there are indeed some challenges, and to say otherwise wouldn’t fully capture the situation.”

As for specific titles, NBA 2K23 has seen 2 million daily active users so far and has sold nearly 5 million units since releasing in September 8. Compared to its predecessor, NBA 2K23 has a higher selling price, and there is significant growth in virtual currency sales, noted the publisher.

Take-Two’s latest sales update on Grand Theft Auto 5 is that the game has sold more than 170 million copies worldwideRed Dead Redemption 2 has also reached 46 million copies sold worldwide, up from 45 million in Q1 2022.

On Zynga, the most substantial performance data given was that Rollic has surpassed 2 billion downloads worldwide. The company also noted that Zynga’s in-app purchases business was under pressure due to macroeconomic circumstances.

NEXT: Take-Two and Zynga share combıned Q1 earnıngs

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