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Take-Two Experiences Decrease In Revenue In Fiscal Year 2015
Take-Two has reported its earnings for the year ending March 31, 2015. Revenues were down without a titanic release like fiscal 2014’s Grand Theft Auto V (though that game continues to sell well). Net revenue (GAAP) was $1.082 billion in this year compared to $2.35 billion in the prior period.
The company posted net losses in the amount of $242.8 million. However, management explained this as deferred revenue and related costs connected with games that “have undelivered elements upon the sale of the game.”
Revenue is deferred and only recognized when those elements are delivered. This could very well be related to pre-purchased in-game currency for Grand Theft Auto Online and NBA 2K that hasn’t been fully redeemed by players.
According to Take-Two, when considering those elements, stock-based compensation, reorganization costs, expenses related to deferred tax liabilities, and more.
With those elements in mind, the unaudited non-GAAP net income is reported as a positive $219.2 million. The company also says it is positioned well for the coming year, and is planning for a stock buyback (typically a sign of confidence) of 10 million shares.
Take-Two is planning to release an expansion for Civilization: Beyond Earth, WWE 2K16, NBA 2K16, and Battleborn in the current fiscal year. At least one other unannounced title was mentioned, also.
Take-Two announced that it has now shipped 52 million copies of titles in the Grand Theft Auto series, 2.5 million copies of Evolve, and 25 million copies of games in the Borderlands franchise.
Our Take
Take-Two has a streamlined lineup for the coming fiscal year, but the company has also been expanding into mobile. Those titles typically have shorter announce-to-release timelines. In short, Take-Two had a decent year, with expected decreases after the huge (and not easily replicated) release of Grand Theft Auto V last fiscal year.
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