Take-Two sales and profits soar

Take Two has reported significant year-on-year increases in its annual sales and profits, and claimed it currently has the strongest development pipeline in its history.

Net revenue for the fiscal year ended March 31, 2019 was $2.67 billion, up almost 50% compared to $1.79 billion in the same period a year prior.

Take-Two said recurrent consumer spending (virtual currency, add-on content and in-game purchases) in titles such as Red Dead Online and Grand Theft Auto Online accounted for 40% of its annual revenue. In total, 63% of net revenue came from digital sales.

Net income increased 92% year-over-year to $333.8 million, as compared to $173.5 million in the prior fiscal year.

For the fourth quarter ended March 31, net revenue was $539 million, compared to $450.3 million a year earlier, with microtransactions accounting for 54% of the total. Fourth quarter net income was $56.8 million, down from $90.9 million the previous year.

The publisher said Grand Theft Auto V has now shipped almost 110 million units, Red Dead Redemption 2 has shipped 24 million copies, and NBA 2K19 has shipped nine million units.

The Borderlands franchise has shipped more than 43 million units, including 20 million copies of Borderlands 2, which still attracts over one million unique monthly users over six years since its September 2012 release.

Take-Two CEO Strauss Zelnick said: “We expect fiscal 2020 to be another strong year for Take-Two, with operating results currently forecasted to be lower than fiscal 2019, due to the extraordinary success of Red Dead Redemption 2, and growing as compared to fiscal 2018.”

Looking ahead, for the first quarter ending June 30, Take-Two expects net revenue ranging from $485 to $535 million, and net income ranging from $74 to $86 million.

For the full financial year ending in March 2020, it’s forecasting net revenue ranging from $2.7 to $2.8 billion, and net income ranging from $389 to $418 million.

“Take-Two has the strongest development pipeline in its history, including sequels from our biggest franchises as well as exciting new IP,” Zelnick said.

“In addition, we are actively investing in emerging opportunities such as Private Division, mobile games, eSports and geographic expansion that have the potential to be enormous drivers of growth. We are exceedingly well positioned to generate significant growth and margin expansion over the long-term.”