Take-Two Stock

Take-Two Interactive (NASDAQ: TTWO) reported revenue of $5.35 billion for the fiscal year ending 3/31/23.  This beat the guidance of $5.24 to 5.29 billion.  However, the company reported a net loss of $1.13 billion versus guidance that the loss would be in the $700 million range.

For fiscal 2024, ending 3/31/24, Take-Two is forecasting revenue to remain relatively flat at $5.37 to $5.47 billion.  Net loss is anticipated in the $500 million range.

Despite the earnings miss, Take-Two stock was up by as much as 12% in after-hours trading.


Currently doing year-over-year comparisons for Take-Two is tough.  In fiscal 2023, Take-Two acquired mobile game company Zynga.  Mobile games accounted for 50% of revenue for the fourth quarter ending 3/31/23 (versus 11% for the previous year quarter.

However, it is not the growth prospects for mobile games that has investors excited.  Instead, it was the following statement by Take-Two Chairman and CEO Strauss Zelnick.

Looking ahead, Fiscal 2025 is a highly anticipated year for our Company. For the last several years, we have been preparing our business to release an incredibly robust pipeline of projects that we believe will take our company to even greater levels of success. In Fiscal 2025, we expect to enter this new era by launching several groundbreaking titles that we believe will set new standards in our industry and enable us to achieve over $8 billion in Net Bookings and over $1 billion in Adjusted Unrestricted Operating Cash Flow. We expect to sustain this momentum by delivering even higher levels of operating results in Fiscal 2026 and beyond.

The major anticipated revenue increase in fiscal 2025 can only mean one thing, a new frontline Grand Theft Auto game will be released.  As much as it has tried to diversify, Take-Two remains a company driven by the Grand Theft franchise.

It was largely in anticipation on news about a new Grand Theft Auto that we recently added Take-Two Interactive to the DFC Intelligence Video Game Stock Portfolio.  We think this game alone will make up for what are likely to be some fairly weak quarters in the near future.

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