The lights are on
The first quarter of 2014 has been good to Take-Two. Not only has the company exceeded earnings expectations, but it has raised its outlook for the remainder of the fiscal year.
Strong sales of Borderlands 2, the Grand Theft Auto series, and Red Dead Redemption propelled Take-Two ahead. Interestingly, Bioshock Infinite is not mentioned here, indicating that the sales drop-off for the title might have been significant. With significant DLC coming out today and later in the year (compared with Borderlands 2, which has had a steady stream), it will be interesting to see if more copies start to move.
Non-GAAP net loss continues to decrease, down from $98.8 million to $47.1 million year-over-year. Non-GAAP net revenue was down year over year though, largely due to significant sales last year of Max Payne 3 and Spec Ops: The Line.
2K is predicting a strong year, largely driven by Grand Theft Auto V, NBA 2K14, and WWE 2K14. The Grand Theft Auto back catalog remains one Take-Two's key tentpoles, and the release of a new title should drive even more interest to legacy entries.
Take-Two's cash reserves improved over last quarter from $402 million to $646 million. The company's operating losses continue to narrow, and with the upcoming releases in September and October, Take-Two is poised to return to positive net revenue for this year.
Our TakeThings are looking very good for Take-Two. The company has made smart moves and the upcoming release of Grand Theft Auto V is going to rocket their earnings. Take-Two is also typically averse to licensing, but smartly entered into an agreement with the WWE following the collapse of THQ.
That franchise has an installed user base that eagerly purchases year after year. In short, it's a sure thing. The only potential weak spot in the lineup is The Bureau: XCOM Declassified, which only suffers from stiff competition with Saints Row IV and Splinter Cell: Blacklist on August 20. I've played The Bureau, and I like it, but it's definitely the underdog.
Email the author Mike Futter, or follow on Google+, Twitter, and Game Informer.
Take Two after GTA V releases: Why can't I hold all this money?
Good job T2. I thoroughly enjoyed Borderlands 2 (and BioShock). Now being on GTAV!
Any company that publishes amazing games should earn amazing revenues...
Glad Take Two is doing well, I wish they could purchase Crystal Dynamics and Edios Montreal from Square Enix. I think with Take Two in charge Crystal and Edios would not have to worry about only selling 3 million copies.
Now they just need to release GTA V and Red Dead Redemption on PC.
Take Two makes money because it (usually) gives us great products. It's not surprising at all that they're beating sales expectations with this and last year's offerings.
No reason they shouldn't be.
That's good that take two is doing well.
I'm glad that Take-Two is doing well.
They make fantastic games.
Take Two are imo the best publisher in the world at the moment. Consistent flow with great games with no annual releases. Good work homies.
Good job Take Two. I enjoy your NBA 2K titles and i hope you can do a good job with WWE 2K. It fell stale with THQ, so I hope you can bring it back to life like WWE13.
Take Two is going quite well