Take-Two Interactive Software, Inc.
CEO : Mr. Strauss H. Zelnick Esq., J.D.
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q3 | 55.9% YoY | -212.2% | -172.8% | 2023-02-06 |
Strauss Zelnick says,
Q3 Net Bookings Slightly Below Prior Guidance
- Q3 net bookings of $1.38 billion were slightly below prior guidance because of macroeconomic conditions, consumers shifted holiday spending toward established blockbuster franchises and titles that were offered with pricing promotions
Grand Theft Auto V and Red Dead Redemption 2 Performance
- Sales of Grand Theft Auto V exceeded expectations during holiday season, and to date, the title has sold in more than 175 million units
- Rockstar Games released new content for both, Halloween and the holiday season as well as a new story-driven update Los Santos Drug Wars
- Red Dead Redemption 2 outpaced expectations, and to-date, the title has sold in more than 50 million units
- Rockstar Games continued to release new updates for Red Dead Online, including a new Halloween Hardcore Telegram Mission and new Call to Arms locations for Halloween and the holidays
NBA 2K23 and PGA TOUR 2K23 Performance
- NBA 2K23 remains the number one selling sports title in North America and continues to expand its audience, and to date, has sold over 8 million units
- PGA TOUR 2K23 supported with the limited-edition holiday bundle that included NBA 2K23 and new content featuring branded gear from Barstool Sports, 100 Thieves, and Dude Perfect
- HB Studios will release more content and features, including the addition of Pebble Beach, cost play functionality and ranked patch making
Marvel’s Midnight Suns Launch
- 2K and Firaxis Games launched Marvel’s Midnight Suns on Windows PC via Steam and Epic Games Store, PlayStation 5 and Xbox Series X|S
- The title launched to critical acclaim with BGC rating at a five out of five, PC Gamer said it was completely brilliant, scoring at 88 out of 100 and Rock Paper Shotgun called it one of the best Superhero games
- The title is being supported with a series of post-launch content that can be purchased individually or as part of the game seasons pass
Zynga’s Mobile Offerings Performance
- Zynga’s in-app purchases performed in line with expectations, and during the quarter, the label experienced strong engagement among its active players, maintaining our global market share
- Empires & Puzzles was a top performer due to strong seasonal content and Black Friday offerings
- Rollic’s Balls’n Ropes reached the number one spot for most downloaded game in the US in December, giving Rollic a total of 20 games that have reached the number one or number two spot in Apple’s US App Store
- Zynga acquired Popcore, which offers a unique balance of hyper-casual experiences that also prioritize long-term player retention rates
Recurrent Consumer Spending and Guidance Update
- During the quarter, recurrent consumer spending rose 117% and accounted for 78% of net bookings
- Guidance for fiscal 2023 net bookings lowered to $5.2 billion to $5.25 billion to take into account the challenging environment
- The company embarked on a company-wide cost reduction program that will optimize its expense structure, while also positioning it to deliver on its anticipated growth trajectory
- The company expects to achieve savings in excess of $50 million as a result of this initiative
Karl Slatoff says,
Upcoming Releases
- Kerbal Space Program 2 launching on February 24, 2023, on Steam, Epic Games Store and other storefronts, with early access for PC.
- Private Division announced several new projects, including a game from Piccolo Studios launching in spring 2024 and a new survival harder game launching after calendar 2024.
- New Private Division development fund to support smaller independent teams with financing and mentorship opportunities.
- WWE 2K23 releasing on March 17, 2023, for PlayStation and Xbox consoles and PC on Steam, featuring John Cena and Bad Bunny on the cover and introducing the fan-favorite WarGames matches.
- Rockstar Games continuing to support Grand Theft Auto Online with additional content updates, and 2K and Firaxis games releasing add-on content from Marvel’s Midnight Suns and Sid Meier’s Civilization VI: Leader Pass.
- The company is investing in a new factory to support the growth of its mobile gaming segment.
Post-Launch Content
- 2K will support WWE 2K23 and other games with an array of post-launch content, which may be purchased individually or through a season pass.
Mobile
- Zynga’s Rollic studio will release a vast array of titles as they’ve done previously, while the label’s other studios remain at work on a variety of games, including several in soft launch that we expect to release in fiscal 2024.
Pipeline
- More information on the company’s pipeline will be shared when fourth quarter results are reported in May.
Q & A sessions,
Mobile Gaming Segment
- The mobile market will continue to experience rapid growth and is the fastest-growing part of the interactive entertainment business.
- Year-over-year pressure in mobile gaming is related to the economy and post-pandemic changes in demand, which are near-term.
- Zynga has the best portfolio of mobile games in the industry, which diversifies the company’s audience and addresses every part of the interactive entertainment business.
- The company is investing in growth and guidance for its mobile gaming segment.
In-App Purchases and Ad Revenue
- In-app purchases are only relevant for about 10% of the market, and advertising should be a way to monetize all of the engagement.
- Commercial success depends on having a robust advertising business that’s not intrusive and positive for the consumer experience.
New IP and Hit Ratios
- Making new hits in mobile is very hard, and hit ratios in the business are low.
- There are several titles in development that the company is excited about, but it’s difficult to predict their success.
- The company is prepared for the potential shock of a new IP not performing well and is focusing on investing in its successful titles.
No bad stock 