Take-Two Delays "Highly-Anticipated" Game to FY2020; Expects Record Year Due to Red Dead Redemption 2
Take-Two disclosed its latest financial results, which are defined strong mostly thanks to microtransactions in Grand Theft Auto Online and More.
Today, Take-Two Interactive Software announced its financial results for the fourth quarter of fiscal year 2018, which ended on March 31st, 2018.
Below you can find all the relevant income figures for both the quarter and the full fiscal year. The results were defined “strong” by the press release.
Chief Executive Officer Strauss Zelnick accompanied the press release with a comment. Zelnick boasts growth in sales driven by recurrent consumer spending (IE: microtransactions), and expects records for the current fiscal year due to Redemption 2, new NBA 2K and WWE 2K games.
Interestingly, we heard that a “highly-anticipated title from one of 2K’s biggest franchises” that was planned for the current fiscal year will now launch in the next, which means between April 1st, 2019 and March 31st, 2020. This game has been teased in the past few financial reports, and many believe it to be Borderlands 3. The reason for the delay is explained as giving the title additional development time.
While we don’t have any official confirmation about the identification of the delayed game as Borderlands 3, it’s very likely to be accurate.
“During the fourth quarter, Take-Two delivered Net Bookings growth driven by increased recurrent consumer spending – including better-than-expected results from Grand Theft Auto Online. Our solid performance marked the completion of another outstanding year for our Company, highlighted by growth in Net Bookings, earnings and net cash provided by operating activities, along with margin expansion. Grand Theft Auto Online and NBA 2K generated record results, exceeding our original expectations, and we benefited from strong ongoing sales of Grand Theft Auto V and other catalog titles.
We expect fiscal 2019 to be another year of profitable growth for Take-Two, including both record Net Bookings and record net cash provided by operating activities, led by the launch of Red Dead Redemption 2 along with new annual releases from NBA 2K and WWE 2K. We will also continue to support our titles with offerings designed to drive engagement and recurrent consumer spending. The highly-anticipated title from one of 2K’s biggest franchises, which had been planned for release during the current fiscal year, is now planned for launch during fiscal 2020 to allow for additional development time. We remain as excited as ever about this title, and expect it to enhance our results next fiscal year.
This year is the 25th anniversary of Take-Two and, over that time, we have built our Company into a diversified and profitable enterprise. Take-Two is exceedingly well-positioned – creatively, strategically and financially – for continued growth and returns for our shareholders over the long-term.”
We also get an explanation of the quarterly results in the accompanying press release.
“Net revenue was $450.3 million, as compared to $571.6 million in last year’s fiscal fourth quarter. Recurrent consumer spending (virtual currency, add-on content and in-game purchases) grew 42% year-over-year and accounted for 44% of total net revenue. The largest contributors to net revenue in fiscal fourth quarter 2018 were Grand Theft Auto Online and Grand Theft Auto V, NBA 2K18, Sid Meier’s Civilization VI, WWE 2K18 and WWE SuperCard, and Dragon City and Monster Legends.
Digitally-delivered net revenue grew 8% to $301.4 million, as compared to $278.7 million in last year’s fiscal fourth quarter. The largest contributors to digitally-delivered net revenue in fiscal fourth quarter 2018 were Grand Theft Auto Online and Grand Theft Auto V, NBA 2K18, Sid Meier’s Civilization VI, and WWE 2K18 and WWE SuperCard.
Net income was $90.9 million, or $0.77 per diluted share, as compared to $99.3 million, or $0.89 per diluted share, for the year-ago period.”
The announcement also included a list of the publisher’s achievements in the past quarter, including both of its subsidiaries Rockstar and 2K games.
- During fiscal year 2018, the Company repurchased 1.51 million shares of its common stock for $154.8 million. During fiscal first quarter 2019 to date, the Company has repurchased 1.60 million shares of its common stock for $153.5 million.
- Effective March 19, 2018, Take-Two was added to the S&P 500 index.
- Released Grand Theft Auto V: Premium Online Edition for PlayStation 4, Xbox One and PC. The Premium Online Edition includes the complete Grand Theft Auto V story experience, the ever-evolving world of Grand Theft Auto Online, and all existing gameplay upgrades and content. Purchasers also receive the Criminal Enterprise Starter Pack that gives players access to a huge range of content including properties, vehicles, weapons and more valued at over GTA$10,000,000 plus GTA$1,000,000 Bonus Cash.
- Released LA Noire: The VR Case Files, featuring seven select cases from the original game rebuilt specifically for a virtual reality experience, for Oculus Rift. LA Noire: The VR Case Files is also available for the HTC VIVE system.
- Released new free content updates for Grand Theft Auto Online, including:
- The Southern San Andreas Super Sport Series, which introduced two new racing modes – Hot Ring Circuit and Target Assault, additional Transform races and Special Vehicle races, two new Adversary modes: The Vespucci Job and Trap Door, 13 new vehicles, and new tools for the Race Creator.
- The Air Quota and Hardest Target Adversary Modes.
- Numerous all-new vehicles and aircraft.
- Announced that Red Dead Redemption 2 will launch for PlayStation 4 and Xbox One on October 26, 2018.
- NBA 2K18 became our highest-selling sports title ever, with sell-in to date of over 9 million units.
- Released the Sid Meier’s Civilization VI: Rise and Fall expansion pack for PC. This expansion builds upon the critically acclaimed gameplay experience of Civilization VI giving players new choices, strategies, and challenges as they guide a civilization through the ages. The expansion introduces new Golden Ages and Dark Ages, a new city Loyalty system, and Governors who can be stationed in players’ cities. Civilization VI: Rise and Fall also adds nine new leaders and eight new civilizations from across the world, giving players even more variety and diversity in how they play Civilization VI.
- Announced that it is working in partnership with Tencent to co-develop NBA 2K Online 2 in China. The title currently is in closed Beta testing and planned for commercial release this fall. NBA 2K Online 2 is based on the console edition of NBA 2K and features 2K’s legendary gameplay, 27 customizable position types, new player trading systems, eSports-optimized features, localized commentary and more.
- Announced that Hangar 13 – the critically acclaimed storytellers and developer of Mafia III – has expanded with the opening of a new location in Brighton, United Kingdom, furthering the studio’s efforts to tap into the world’s most talented development pools and build a globally diverse team. Hangar 13 is currently working on an unannounced AAA project for 2K and will continue to scale in both the U.S. and Europe at a pace consistent with the development of the game.
- Released Kerbal Space Program Enhanced Edition, the new console version of the beloved space simulation game, for digital download on PlayStation 4 and Xbox One. Kerbal Space Program Enhanced Edition is built from the ground up to include re-worked and console-optimized UI, a new control scheme exclusively for consoles, and more ways to enjoy launching spaceships into orbit.
- Released Kerbal Space Program: Making History Expansion for PC. This first expansion for the critically acclaimed space simulation adds a wealth of new and exciting content to the game, including a robust Mission Builder that lets players create and share their own scenarios, and a History Pack containing missions inspired by historical moments in space exploration.
- Announced that Kerbal Space Program will be released on Tencent’s WeGame distribution platform as a premium PC game at a date to be determined.
If you want to compare these results with those of the previous quarter, you can check out our dedicated article from February.