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Take Two Posts Revenue, Profit Gains In Second Fiscal Quarter

by Mike Futter on Nov 05, 2015 at 09:31 AM

Take Two has reported its earning for the second quarter of its 2016 fiscal year. Revenues and profits are up significantly from the same period last year.

Net revenue jumped 175 percent from $126.3 million last year to $347 million in this period. Take Two recovered from a loss in the previous quarter, posting profits of $54.7 million. The company showed a deficit $41.4 million last year. Take Two is still showing a six-month loss of $12.3 million, an improvement of more than $50 million compared to last year.

Take Two digital revenues amounted to 38.6 percent of total non-GAAP revenues. The company says that Grand Theft Auto, NBA 2K, Borderlands, and WWE 2K franchises were the largest contributors to full-title and add-on digital revenue.

Add-on spending (virtual currency and DLC) purchases were up 39 percent year-over-year. These totaled more than half of the $141 million in digital revenues.

The remainder of Take Two’s fiscal year includes the Borderlands Triple Pack, XCOM 2, Civilization Revolution 2 Plus, and an assortment of add-on content. Next fiscal year’s announced titles include Battleborn and Mafia III. We reasonably assume that NBA 2K17 and WWE 2K17 will also be arriving.

[Source: Take Two]


Our Take
Take Two’s announced lineup is relatively thin, however the company still has significant recurrent revenue streams in Grand Theft Auto Online and NBA2K virtual currency. Take Two also has a strong back catalog, as Grand Theft Auto games still bring people in. The loss of Battleborn will be felt, but not nearly as much if the game fails to deliver with gamers.