Take-Two posts $35.4m loss but beats Q1 expectations

GTA Online and NBA 2K15 continues to do the business for Take-Two, which beat its expectations in Q1 despite not releasing any major titles.

The firm saw revenue (GAAP) of $125.4m for the quarter, a decline of 12 per cent compared to the same period in its last financial year. Net losses narrowed to $35.4m. In terms of non-GAAP, revenue grew five per cent to 151.6m, while losses reduced to $11.2m.

Back catalogue sales for the publisher remain strong, but it was the continued performance of its digital offerings that significantly boosted the business. Digital-delivered revenue (including virtual goods, add-on content and online games) grew 43 per cent to $106.4m.

The company has delayed its Evolve game, which was tipped to be amongst the big new IP launches of Christmas. But it remains in the firm’s financial year, and Take-Two says it still expects to hit the same figures it predicted back in March.

It estimates revenue of between $1.35 billion to $1.45 billion. Its big games for the remainder of its financial year include the aforementioned Evolve, NBA 2K15, Civilization: Beyond Earth, WWE 2K15, Borderlands: The Pre-Sequel and the PS4, Xbox One and PC launch of GTA V.

During the fiscal first quarter, we delivered Non-GAAP revenue growth without the benefit of any major new releases,” said Strauss Zelnick, Chairman and CEO of Take-Two.

Our better-than-expected results were driven by the strength of our expanding portfolio of digitally-delivered offerings combined with persistent robust demand for NBA 2K14 nd Grand Theft Auto V.

Take-Two has an extraordinary development pipeline, including a diverse array of the highest-quality new titles and innovative offerings designed to drive recurrent consumer spending. Our lineup for the current fiscal year is highlighted by six eagerly anticipated new releases, such as Grand Theft Auto V for PS4, Xbox One and PC, NBA 2K15 , and Evolve – the winner of the E3 2014 Game Critics’ Best of Show award. Fiscal 2015 is poised to be another year of strong profits for our organization, and we remain extraordinarily well-positioned for the future.”

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