Take-Two Net Revenue Grows Substantially in 2016; Has Been Transformed by Digital
Rockstar and 2K parent company Take-Two continues to thrive, especially in the digital marketplace.
News of Red Dead Redemption 2’s delay from fall 2017 to spring 2018 is sad news for gamers looking forward to jumping back into the series, and is news that is likely to leave more than a few investors disgruntled; but Take-Two won’t care, it’s killing it right now.
For the fiscal year of 2017, Take-Two — parent company of Rockstar and 2K — saw net revenue grow 26 percent to $1.78bn year-on-year. Meanwhile, digital net revenue specifically grew a healthy 32 percent to $921.7m. Recurrent consumer spending also reached its highest level ever, accounting for 50 percent of Take-Two’s digital net revenue, or 26 per cent of its total net revenue.
Looking at Q4 2016 more specifically, Take-Two saw net revenue grow 52 per cent year-on-year to $571.6m and digital net revenue rise 43 percent year-on-year to $278.7m. Meanwhile RCS accounted for 50 per cent of its digitally net revenue last quarter, and 24 per cent of the publisher’s total net revenue.
Speaking to MCV, Zelnick had the following to say about the company’s growth within the digital distribution realm:
“We are proud that digital distribution has grown our company. We’re very proud that we’ve built a recurring consumer spending business that bookings from recurrent consumer spending grew 52 per cent year-over-year. They counted for about 32 per cent of our total bookings, so our business has been transformed. Five years ago, there was no such thing as recurrent consumer spending. We were an innovator with Grand Theft Auto IV, and we have, we felt, been a leader in this space ever since.”