Take-Two Interactive Software program didn’t supply a particular replace on the launch date of Grand Theft Auto VI (it’s nonetheless coming this fall), but it surely did report $1.37 billion web bookings for the third-fiscal quarter ended December 31.
The web bookings quantity was up 3% from $1.34 billion a 12 months earlier. Good outcomes for NBA 2K helped offset a slowdown in cellular gaming outcomes. In after-hours buying and selling, Take-Two’s inventory is up 6.51% at $195.49.
GAAP web income was $1.36 billion, in comparison with $1.37 billion in final 12 months’s fiscal third quarter. The GAAP web loss was $125.2 million, or 71 cents per share, as in comparison with $91.6 million, or 54 cents per share, for the comparable interval final 12 months. Analysts have been anticipating GAAP revenues of $1.39 billion and a loss per share of 90 cents.
Internet bookings are the corporate’s operational metric, and it’s outlined as the web quantity of services bought digitally or sold-in bodily in the course of the interval. It consists of licensing charges, merchandise, in-game promoting, technique guides and writer incentives. GAAP revenues don’t rely income that’s booked within the quarter however realized at later occasions.
The most important contributors to web bookings have been NBA 2K25, Grand Theft Auto On-line and Grand Theft Auto V, Toon Blast, Match Manufacturing facility!, our hyper-casual cellular portfolio, Empires & Puzzles, Crimson Lifeless
Redemption 2 and Crimson Lifeless On-line, Phrases With Associates, and Toy Blast.
“We achieved stable outcomes in the course of the vacation season. Our web bookings of $1.37 billion have been inside our steerage vary, as important outperformance in NBA 2K helped to offset moderation skilled in a number of of our cellular franchises. On the identical time, our working outcomes surpassed expectations, led by the upside from NBA 2K, in addition to a shift in timing of bills that benefited the quarter,” stated Strauss Zelnick, CEO of Take-Two Interactive, in a press release. “
He added, “For Fiscal 2025, we’re reiterating our Internet Bookings steerage vary of $5.55 to $5.65 billion and our outlook for working efficiency. Our projections for the fourth quarter steadiness power in NBA 2K with a continuation of the present cellular tendencies, and the shift of some working bills into the interval.”
And Zelnick stated, “Trying forward, this calendar 12 months is shaping as much as be one of many strongest ever for Take-Two, as we plan to launch Sid Meier’s Civilization VII on February eleventh, Mafia: The Previous Nation in the summertime, Grand Theft Auto VI within the fall, and Borderlands 4. We proceed to speculate prudently in our growth pipeline and stay assured in Zynga’s potential to create new cellular ceaselessly franchises as demonstrated by their ongoing success with Match Manufacturing facility. As we proceed to ship hits, we stay extremely assured that we are going to obtain sequential will increase in, and file ranges of, web bookings in fiscal 2026 and 2027.”
Take-Two stated recurrent client spending elevated 5% and accounted for 80% of complete GAAP web income. Recurrent client spending is generated from ongoing client engagement and consists of digital foreign money, add-on content material, in-game purchases and in-game promoting.
Zelnick interview
I interviewed Zelnick briefly and requested if Take-Two would help the Nintendo Change 2 in an enormous method. He stated he couldn’t touch upon their plans. And he added, “Traditionally, we’ve supported all main platforms and we’ve selectively supported Nintendo platforms. For instance, Civ 7, which is in early entry at the moment, will likely be out there for Change. So I’d have each perception that we’ll be supportive of Change 2.”
And I requested if he would supply a reassurance that the dates for Mafia: The Previous Nation and GTA VI wouldn’t slip, given there is no such thing as a launch date for these video games but.
“It’s at all times the probabilities in our enterprise. Nonetheless, we’ve given the slender window for upcoming titles. In spite of everything, it’s February and we’ve outlined the discharge schedule by means of calendar 12 months finish,” he stated.
Requested if he have been nervous concerning the tariffs proposed by Donald Trump and whether or not they would have an effect on sport {hardware} or disc gross sales, he stated, “I’m unsure it could have an effect on bodily discs. I do assume the tariffs could possibly be a unfavourable for console gross sales. As an economist, I’m not an enormous fan of commerce wars. I do assume there are moments the place tariffs make sense. I’m inspired by the pause in Mexico and Canada. However I’m a free dealer so typically talking I don’t assume tariffs are the appropriate option to construct or tax an economic system.”
Take-Two confirmed that Michael Condrey, founding father of the thirty first Union sport studio, had left the corporate. It additionally introduced that studio is making Venture Ethos. Requested about it, he stated, “We’re grateful to Michael Condrey. He did superb work for us. He introduced us a undertaking and created a staff. He’s going to proceed to advise us on the way forward for Venture Ethos. We’ll be managing that. The transition staff” is main the completion of that sport.
As for direct-to-consumer cellular gross sales, I famous the corporate stated it’s rising and requested if he views that as a strategic alternative.
He stated he count on direct-to-consumer will likely be an even bigger a part of the corporate’s cellular platform than it at present is.
“That stated, it’s definitely not going to be the lion’s share of gross sales. We’re nonetheless fairly pleased to work with our retail companions, and we’ll proceed to take action worldwide,” he stated.
As for the cellular tendencies which have slowed Zynga’s gross sales, he stated, “Our view is that cellular has returned to modest development, however we haven’t had the type of highly effective {industry} tailwinds that everybody was having fun with up till mid-2022.
“So the excellent news is that it’s again to development. The opposite information is it’s nonetheless a considerably difficult market. Our recurrent client spending cellular was up about 6% within the quarter,” he stated. “That was considerably shy of our expectations. However, we had this large hit in Match Manufacturing facility and nice efficiency in lots of titles like Toon Blast and Toy Blast. So we’re feeling superb about Zynga. We’re thrilled that it’s a part of our portfolio. We have now what we consider will likely be nice releases developing. On the identical time, the {industry} is a bit challenged.”
I additionally requested concerning the ESA’s new enterprise convention, iicon, coming in 2026. He stated, “I’m tremendous enthusiastic about it. Frankly i feel it’s going to be nice.”
Outlook
For the fiscal 12 months, Take-Two is repeating its web bookings steerage for the present FY25 fiscal 12 months at $5.55 billion to $5.65 billion. Whereas third quarter working outcomes exceeded expectations, the corporate expects the fourth quarter to be affected by a continuation of present cellular tendencies, in addition to the shift of some working bills into the interval.
Recurrent Shopper Spending rose 9% over final 12 months, which was in step with steerage, and accounted for 79% of web bookings.
NBA 2K grew over 30%, which enormously surpassed the inner forecast, led by new options and innovation in sport modes. Cell elevated 6%, pushed by the addition of Match Manufacturing facility and power in Toon Blast, Toy Blast and Phrases with Associates. Nonetheless, this was beneath steerage of low double-digit development, primarily resulting from underperformance within the hyper-casual cellular portfolio and Empires and Puzzles. And, as anticipated, Grand Theft Auto On-line declined.
Throughout the quarter, Take-Two launched NBA 2K 25 Arcade Version (Apple Arcade), Crimson Lifeless Redemption and Undead Nightmare (PC), and Grand Theft Auto On-line: Brokers of Sabotage. Digital is now 96% of the general web bookings. In consoles, 79% of sport gross sales are digital. Catalog gross sales have been $350 million, or 53% of non-mobile web bookings.
The corporate is elevating the recurrent client spending forecast to five% development, which represents 78% of web bookings, pushed by the exceptional efficiency of NBA 2K, which is predicted to develop low double-digits. Cell is now anticipated to develop low single-digits, factoring within the present enterprise tendencies. And Grand Theft Auto On-line continues to be anticipated to say no. The corporate initiatives the web bookings breakdown from labels to be roughly 49% Zynga, 34% 2K, and 17% Rockstar Video games.
Take-Two stated the forecast for geographic web bookings will likely be 60% United States and 40% Worldwide.
2K outcomes
NBA 2K25 delivered an outstanding quarter, yielding important upside to the forecast. Thus far, the title has sold-in over seven million items, and engagement was extraordinarily robust in comparison with final 12 months, with Recurrent client spending up over 30%, each day lively customers up practically 20%, and month-to-month lively customers up practically 10%.
The sport has community-inspired enhancements to gameplay, main technological updates, and the addition of latest sport modes.
Moreover, 2K continues to develop the industry-leading basketball franchise with NBA 2K Arcade Version, MYTEAM, NBA 2K Cell, and NBA 2K On-line in China, all of which contributed to a different extremely profitable 12 months for the NBA 2K franchise as an entire.
Rockstar Video games outcomes
The Grand Theft Auto collection continues to be main the {industry}. Grand Theft Auto V has sold-in over 210 million items worldwide. GTA On-line delivered a robust quarter, led by its vacation replace, Brokers of Sabotage, which gamers praised for its depth, new upgrades, and array of content material. GTA+ continues to develop its attain, with membership for the quarter growing 10% year-over-year.
Rockstar Video games continued to develop the viewers for Crimson Lifeless Redemption 2, which has sold-in greater than 70 million items to-date. The title is at present having fun with its highest degree of concurrent gamers on Steam. As well as, Crimson Lifeless On-line engaged its viewers additional in the course of the interval with the discharge of the fan-favorite Halloween Go, that includes seasonal-themed bonuses and rewards.
Zynga outcomes
Recurrent Shopper Spending grew mid-single digits. Whereas this was considerably beneath our plan, we stay extremely optimistic about Zynga’s future.
Toon Blast and Toy Blast each delivered double-digit development, led by partaking options together with new occasion varieties, improved participant profiles, and enhanced tuning.
Match Manufacturing facility is performing very nicely and stays on monitor to turn out to be Zynga’s second largest title by the tip of this fiscal 12 months by way of web bookings. Peak continues to execute strongly and has created one of many top-grossing titles within the puzzle style.
Whereas Empires & Puzzles carried out beneath expectations within the quarter, Take-Two is assured in the way forward for this extremely worthwhile ceaselessly franchise. The staff is launching new occasion varieties and corresponding heroes, in addition to growing in-game rewards.
Zynga continued to leverage the zeitgeist of popular culture and broadened its partnerships with main leisure manufacturers and personalities, together with Phrases With Associates with Bravo’s Actual Housewives, Zynga Poker with actor/comic Rob Riggle, and Energy Slap with TKO.
The groups are rising direct-to-consumer choices and deploying key learnings throughout the portfolio. Throughout the vacation season, Take-Two achieved robust double-digit DTC conversion in a number of main titles, and we’re taking motion to take care of this momentum.
Take-Two stated it’s assured in Zynga’s continued potential to launch profitable new titles in addition to model extensions for a few of our console IP. Within the quarters forward, the corporate seems ahead to launching new hit cellular video games, together with the most recent installment of Zynga’s racing franchise, CSR 3.
Future line-up
Take-Two has lots of video games coming. Sid Meier’s Civilization VII arrives on February 11. Participant sentiment is optimistic on that title, Take-Two stated. I’ve been taking part in the sport and it’s a fantastic title. PGA Tour 2K25 is approaching February 28. WWE 2K25 releases on March 14.
However the calendar continues to be obscure for different titles. Hangar 13 and 2K’s Mafia: The Previous Nation is coming this summer time, GTA VI is the autumn of 2025, Borderlands 4 is coming this 12 months. There aren’t any dates but for Zynga’s CSR 3, Ghost Story Video games’ Judas (the most recent title from Ken Levine), and no date for 2K’s Venture Ethos. Michael Condrey, head of the studio making that sport, has left the corporate.
The Mafia franchise has bought greater than 35 million copies up to now.
Lengthy-term outlook
Trying forward, this calendar 12 months is shaping as much as be one of many strongest ever for Take-Two, the corporate stated.
The corporate stated it additionally stays assured in Zynga’s potential to create new cellular ceaselessly franchises as demonstrated by their ongoing success with Match Manufacturing facility.
“We’re exceedingly optimistic concerning the business potential of our titles and consider that they may have a transformative impact on our enterprise – and our {industry} – over the long run,” the corporate stated. “As we execute on our mission to create our {industry}’s most modern and interesting leisure experiences, we stay extremely assured that we are going to obtain sequential will increase in, and file ranges of, web bookings in Fiscal 2026 and 2027.”
