Take-Two Expects "Record Year" with Red Dead Redemption 2 and "Highly Anticipated New Title" by 2K
Take-Two Interactive Software discloses its financial results, and as usual they're solid.
Today, Take-Two Interactive Software announced its financial results for the first quarter of fiscal year 2018, related to the period between April 1st and June 30th, 2017.
Below you can read the main revenue and profit figures, with results that are defined “strong” by the press release.
- GAAP Net revenue grew 34% to $418.2 million.
- GAAP Net income increased to $0.56 per diluted share.
- Net Sales grew 28% to $348.3 million.
CEO Strauss Zelnick accompanied the press release with a comment. Interestingly, Zelnick mentions that the company expects fiscal year 2019 (from April 1st, 2018, to March 31st, 2019), to be a record year for sales due to the launch of Red Dead Redemption 2 by Rockstar Games and an unannounced “highly anticipated new title” from one of 2K Games’ largest franchises.
At the moment we have no information on the nature of this game, but we’ll probably hear more in the next few months. For the record, later in the conference call Zelnick clarified upon being asked that Borderlands is indeed to be considered a 2K Games franchise, but he did not confirm that Borderlands 3 is the game mentioned here.
“Fiscal 2018 is off to an excellent start, with our business’s positive momentum continuing to exceed our expectations in the first quarter. We delivered growth in both Net Sales and net revenue, as well as margin expansion. Our results were led by the ongoing extraordinary performance of Grand Theft Auto V and Grand Theft Auto Online, strong demand for NBA 2K17 – which is now our highest-selling sports title ever – and increased recurrent consumer spending.”
“As a result of our stronger-than-expected first quarter operating results and improved outlook for the remainder of the year, we are increasing our fiscal 2018 outlook for Net Sales and net cash provided by operating activities. Looking ahead, we expect fiscal 2019 to be a record year for Net Sales and net cash provided by operating activities led by the launches of Rockstar Games’ Red Dead Redemption 2 and a highly anticipated new title from one of 2K’s biggest franchises. We have a robust development pipeline and are better positioned than ever for long-term growth and margin expansion.”
The publisher also shared a bulleted list of highlights about both its subsidiaries, Rockstar and 2K games. Once more we get the confirmation that Red Dead Redemption 2 will release in the next fiscal year, meaning after April 1st, 2018.
- Further diversified its industry-leading portfolio of owned intellectual property through the acquisition of Kerbal Space Program, the critically acclaimed physics-based space simulation game. Created by independent developer Squad, Kerbal Space Program was originally released on PC in April 2015* and has sold over two million units to date. The title has been widely popular with the media and consumers alike, earning a Metacritic rating of 88 and a Steam user score of 97%. The Kerbal Space Program: Making History Expansion is planned to launch for PC later this calendar year.
- Released new free content updates for Grand Theft Auto Online, including:
- Gunrunning, a massive update offering new opportunities in illegal weapons trafficking gameplay and featuring tactical, full-service Mobile Operation Centers complete with new weapon upgrades and deep customization, all new Weaponized Vehicles and much more.
- Dawn Raid, a two-team race under the cover of darkness to track down highly coveted contraband involving parachutes, Night and Thermal Vision Goggles and the Trackify app to locate the correct package.
- Overtime Rumble, a new team-based fan favorite mode that pits up to 10 players in a vehicular remix of Darts as players try to land the Ruiner 2000 on platforms of various sizes.
- Power Mad, a point-based battle where players on each team fight for the right to control the minigun-toting Juggernaut.
- Announced that Red Dead Redemption 2 is planned for release worldwide in spring 2018 (fiscal year 2019) for PlayStation 4 and Xbox One.
- Released two downloadable add-on packs for Mafia III – Stones Unturned and Sign of the Times – which are available for individual purchase or as part of the title’s Season Pass.
- Announced Seth Rollins as the cover Superstar for WWE 2K18, the next release from its flagship WWE video game franchise, which will launch on October 17, 2017 for PlayStation 4 and Xbox One. Players who purchase the WWE 2K18 Deluxe Edition or WWE 2K18 Collector’s Edition from participating retailers will receive Early Access to their game copies and in-game bonuses beginning four days early on October 13, 2017. In addition, WWE 2K18 will be released for Nintendo Switch during fall 2017, marking the first time in five years that a WWE game has been available on a Nintendo platform. The title will be supported with a series of post-launch content, including a Season Pass.
- Announced that Cleveland Cavaliers point guard, Kyrie Irving, will be the cover athlete of NBA 2K18, the next iteration of its top-rated and top-selling NBA video game simulation series, which will launch on September 19, 2017 for PlayStation 4, PlayStation 3, Xbox One, Xbox 360, Nintendo Switch, and Windows PC platforms. In addition, Hall of Famer Shaquille O’Neal will be on the cover of the NBA 2K18 Legend Edition. This special edition will place a spotlight on “The Big Aristotle” with special Shaq-themed memorabilia and content, extending his legacy as the most dominant center in NBA history. NBA 2K18 will also debut the series’ first-ever Canadian cover, featuring Toronto Raptors’ shooting guard DeMar DeRozan.
- Announced that XCOM 2: War of the Chosen, the expansion pack for the 2016 award-winning strategy title from Firaxis Games, will be available for Windows PC, PlayStation 4 and Xbox One on August 29, 2017.
Last, but not least, we get the usual list of games set to be released in the upcoming months. Interestingly, NBA 2K18 will be only digital at launch (September 19th) on Switch, with a physical release later in the fall.
If you want to compare these results with those of the previous quarter, you can check out our dedicated article from May.