Take-Two Interactive released today very strong financial results for the third quarter of fiscal year 2015, highlighting, among others, the stellar performance of Grand Theft auto V.
For fiscal third quarter 2015, GAAP net revenue was $531.1 million, as compared to $1.86 billion for fiscal third quarter 2014. GAAP net income was $40.1 million, or $0.42 per diluted share, as compared to $578.4 million, or $4.69 per diluted share, for the year-ago period.
GAAP net revenue and net income declined year-over-year in fiscal third quarter 2015 because GAAP results for fiscal third quarter 2014 included net revenue and cost of goods sold related to sell-in of the Grand Theft Auto V game during both fiscal second quarter and fiscal third quarter 2014, as Grand Theft Auto Online launched during fiscal third quarter 2014. In addition, GAAP results for fiscal third quarter 2015 reflect the deferral of net revenue and cost of goods sold related to sell-in of Grand Theft Auto V during the quarter.
Chairman and CEO Strauss Zelnick accompanied the press release with a comment:
Take-Two’s positive momentum was demonstrated once again, as we delivered exceedingly strong third quarter revenues and profits, and finished the quarter with nearly $1 billion in cash and short term investments.
We successfully launched one of the most diverse holiday lineups in the Company’s history, led by Grand Theft Auto V for PlayStation 4 and Xbox One, NBA 2K15, WWE 2K15, Borderlands: The Pre-Sequel and Sid Meier’s Civilization: Beyond Earth. We also generated substantial growth in digitally-delivered revenue, including through our ongoing focus on offerings that drive recurrent consumer spending. As a result of Take-Two’s outstanding holiday season performance, we are raising the Company’s financial outlook for the full year.
Looking ahead, we expect that our fourth quarter will provide a strong finish to fiscal 2015, which is lining up to be one of Take-Two’s best years ever. Anchored by the eagerly-anticipated launches of Evolve and Grand Theft Auto V for PC, along with an array of other offerings, we will continue to deliver titles that captivate audiences around the world and set benchmarks for excellence. With our world-class creative teams, robust development pipeline, cutting-edge technology and ample capital resources, Take-Two is superbly positioned to build on its solid foundation and continue to capitalize on this dynamic entertainment market.
Here are a few detailed points made within the earnings press release, split between the two major arms of Take-Two’s business:
- Launched Grand Theft Auto V and Grand Theft Auto Online on PlayStation®4 and Xbox One. Grand Theft Auto V is the highest-rated game to date for PlayStation 4 and Xbox One*, and has now sold-in more than 45 million units on console, including nearly 10 million units on PlayStation 4 and Xbox One. The title is planned for launch on PC on March 24, 2015.
- Released two updates for Grand Theft Auto Online, including The Last Team Standing Update and the Festive Surprise.
- Released the portable classic Grand Theft Auto: Chinatown Wars for Android and Amazon Kindle Fire, and updated the game for iOS. This updated version features new highly customizable touchscreen controls, physical controller support, plus high resolution widescreen display on supported devices, as well as full Retina Display resolution on iOS.
- Announced that Grand Theft Auto Online Heists – a four-player co-op mode for Grand Theft Auto Online that enables players to plan, prepare and execute multi-tiered Heists across Los Santos and Blaine County – will be coming in early 2015 as a free update on PlayStation 4, PlayStation 3, Xbox One, Xbox 360 and PC.
- Launched NBA 2K15 on PlayStation 4, PlayStation 3, Xbox One, Xbox 360 and PC, as well as on iOS and Amazon devices. The title is the highest-rated sports game of 2014 across consoles and PC*, and has continued the series’ trend of year-over-year growth with approximately 5.5 million units sold-in to date.
- Launched WWE 2K15 on the Xbox One, Xbox 360, PlayStation 4 and PlayStation 3. Developed collaboratively by Yuke’s and Visual Concepts, WWE 2K15 is being supported with downloadable add-on content, including a Season Pass.
- Released Borderlands: The Pre-Sequel on the Xbox 360, PlayStation 3 and PC. Co-developed by Gearbox Software and 2K Australia, the title is being supported with downloadable add-on content, including a Season Pass.
- Launched Sid Meier’s Civilization: Beyond Earth for PC, Mac and Linux. Developed by Firaxis Games, Sid Meier’s Civilization: Beyond Earth is a new stand-alone, science fiction-themed entry in the award-winning Civilization franchise, which has sold-in more than 29 million units worldwide.
- Released BioShock® Infinite: The Complete Edition for Xbox 360 and PlayStation 3, which includes the award-winning title and all of its previously-released add-on content.
- Expanded its offerings for tablets and smartphones with the releases of Evolve: Hunters Quest, MyNBA 2K15, and NHL® 2K.
- Announced that Borderlands: The Handsome Collection™ is planned for launch on PlayStation 4 and Xbox One on March 24, 2015. The Handsome Collection brings the critically-acclaimed Borderlands series to next-gen consoles for the first time and offers the complete story of the franchise’s most iconic villain, Handsome Jack. The Handsome Collection includes Borderlands 2 and Borderlands: The Pre-Sequel along with all of the downloadable content for both titles – currently over $100 of value on prior-gen consoles, but now for only $59.99 and with the graphical fidelity of next-gen consoles, four-player split-screen on a single television, and the ability to transfer save files to the next-gen consoles with new cross-save functionality.
- Announced downloadable content details for Evolve™, including a Hunting Season Pass, a fourth playable monster, Behemoth, and more. Developed by Turtle Rock Studios and planned for global launch on Xbox One, PlayStation 4 and PC on February 10, 2015, Evolve is the only game in history to earn both the official Electronic Entertainment Expo and Gamescom “Game of Show” awards in the same year.
- Announced that Sid Meier’s Starships™ is planned for launch on PC, Mac and iPad in spring 2015. This turn-based, tactical space combat game will feature cross-connectivity and unlockable bonuses with Sid Meier’s Civilization: Beyond Earth.
- Announced the formation of Hangar 13, a new development studio led by veteran game developer Haden Blackman. Hangar 13 is located at 2K’s headquarters in the San Francisco Bay Area and is working on an unannounced next-gen title.
We also get an overview of the North American release dates of the upcoming titles by the publisher, including a confirmation of GTA5‘s release date on PC on March 24th:
Completing the picture, is the revenue forecast for the fourth quarter of this fiscal year (which will end on March 31st) and for the full year, which has been unsurprisingly raised since the latest prediction.