Take-Two Announces Financial Results Above Expectations: Delays 2 Core Games to Later in Fiscal Year

Today Take-Two Interactive Software announced its financial results for the first quarter of the fiscal year 2022, which ended on June 30, 2021.

Below you can check out a summary of the company’s performance.

• GAAP net revenue was $813 million
• GAAP net income per diluted share increased to $1.30 
• GAAP net cash provided by operating activities for the three-months ended June 30, 2021 was $148 million
• Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the three-months ended June 30, 2021 was $29 million
• Net Bookings were $711 million, above guidance
• Company reiterates outlook for fiscal year 2022

That the results are defined above expectations, and while net revenue dropped slightly (2%) year-on-year, net income increased 72% year-on-year.

The press release also included a comment from Chief Executive Officer Strauss Zelnick, who boasted about the results above expectations.

He mentions that two of the company’s core games will ship later in the fiscal year (wich means they’re still coming by March 2022 at the latest) than previously expected.

For reference, in last quarter’s report, Take-Two announced that it would release four “core releases” of which two from new franchises by March 2022. This means that the number remains the same, but two of them will release a few months later than predicted.

“We began fiscal 2022 with positive momentum, which was reflected in our ability to deliver first quarter operating results which were above our expectations. During the period, we continued to invest in our future, including growing our creative teams and expanding our mobile business and expertise further.

“For the year, we are reiterating our outlook, as there has been some movement in our release schedule, including two of our immersive core titles shifting to later in fiscal 2022 than contemplated by our prior guidance. As we deliver on our expansive multi-year pipeline, we believe that we will achieve sequential growth in fiscal 2023 and establish new record levels of operating results over the next few years.

“We remain highly optimistic about the growth potential for the interactive entertainment industry and our competitive positioning within the sector. We believe that our unique strategic advantages, together with our focus on enhancing our enterprise and capitalizing on our growth opportunities, will enable us to deliver long-term shareholder value.”

Below you can check out a few highlights from Take-two’s brands.

Take-Two:

• Acquired privately-held Nordeus for an upfront purchase price of $225 million. There is the potential for the payment of an additional earn-out consideration based upon Nordeus achieving EBITDA results above certain thresholds during each of the first two years. Founded in 2010, Nordeus is a mobile games company based in Belgrade, Serbia, best known for Top Eleven, the world’s most successful mobile soccer management game* with over 240 million registered users.
• Acquired privately-held Dynamixyz, a world-class leader in video-based facial animation services. Founded in 2010 in Cesson-Sévigné, France, Dynamixyz owns and operates a suite of leading-edge, proprietary motion capture, facial-analysis, and full 3D processing tools and technology that combines computer graphics, computer vision, and machine learning. Financial details of the acquisition were not disclosed.
• Take-Two was a founding donor of The Gerald A. Lawson Endowment Fund for Black and Indigenous Students, which was created with the goal of increasing those groups’ representation in the gaming and tech industries. The fund provides student support for Black and Indigenous students who wish to pursue undergraduate or graduate degrees in game design or computer science from USC’s prestigious program.

Rockstar Games:

• Released new free content updates for Grand Theft Auto Online:
  • On July 20, delivered the Los Santos Tuners update. This massive update introduced the LS Car Meet, a new shared social space for players to get together to modify their personal vehicles, watch others modify their Tuner vehicles in real-time, race and test various vehicles on an underground test track, and much more. In addition, Los Santos Tuners features six new robbery Contracts; six new race types; ten new highly customizable vehicles; new collectible USB sticks featuring music from Moodymann and Seth Troxler, allowing players to experience music in an all-new way, and a host of quality-of-life updates, including a new customizable radio station wheel.
  • Earlier in the Summer, Rockstar Games released eight new stunt races, seven new arenas for Deadline mode and regular in-game bonuses and incentives for Grand Theft Auto Online.
• Released new free content updates for Red Dead Online:
  • On July 13, released the Blood Money update for Red Dead Online. The update introduced a series of criminal-themed Opportunities; complex new missions, including the game’s first train robbery; and The Quick Draw Club – a series of four distinct, rapid-fire passes featuring criminal-themed unlockable rewards, bonuses, and more.
  • Prior to this update, Red Dead Online introduced eight new races spanning iconic locations across the game’s five states and a creative array of bonuses and incentives.
• Rockstar Games and Tribeca Festival joined together for a special free live performance from The Battery featuring Red Dead Redemption 2 Original Soundtrack producer, Daniel Lanois. The performance featured special guests, D’Angelo and Rhiannon Giddens.
• Rockstar Games teamed with CircoLoco — creators of some of the world’s biggest and most influential real-world parties and one of the most recognized brands in modern dance music — to create a brand-new record label, CircoLoco Records. The label is focused on elevating the dance music culture scene through the collective power of these two entertainment brands.

2K:

• Unveiled the full roster of cover athletes for NBA 2K22, the next installment of the top-rated and top-selling NBA video game simulation series of the past 20 years. Global phenomenon and two-time NBA All-Star, Luka Dončić, will appear on the Standard Edition and Cross-Gen Digital Bundle, while the premium, NBA 75th Anniversary Edition will showcase NBA legends Kareem Abdul-Jabbar, Dirk Nowitzki, and Kevin Durant. In North America, players can purchase a special version of the Standard Edition featuring six-time WNBA All-Star and WNBA Champion, Candace Parker, on the cover and available exclusively through GameStop and EB Games. In Japan, players can also purchase a special version of the Standard Edition that will feature Washington Wizards Rui Hachimura, a rising star who was the first Japanese player to not only be drafted in the first round in 2019, but also to reach the NBA Playoffs. The Standard Edition will be available for $59.99 on Gen 8 consoles and $69.99 for Gen 9 consoles; the Cross-Gen Digital Bundle will be available for $79.99 and grant players access to the Standard Edition across Gen 8 and Gen 9 consoles within the same console families; and the NBA 75th Anniversary Edition will be available for $99.99 for both Gen 8 and Gen 9 consoles.
• Continued to expand the breadth of NBA 2K offerings with the launch of the NBA 2K21 Arcade Edition on Apple Arcade, delivering an all-new basketball simulation game experience to Apple’s video game subscription service, available on iPhone, iPad, Apple TV, and Mac devices.
• Offered a variety of updates to NBA Supercard, including a new card tier, as well as new modes, themes and more.
• The NBA 2K League kicked off its fourth season on May 19, which will conclude on September 4 with the NBA 2K League Finals delivered by DoorDash.
• Released several updates to PGA TOUR 2K21, including a series of fan-favorite and all-new custom courses created by some of the most talented course creators in the PGA TOUR 2K community.
• New apparel, accessory and footwear offerings were made available for PGA TOUR 2K21 through the NBA team logo gear update and the TravisMathew and PUMA golf gear update.
• During the WrestleMania 37 broadcast on April 10, 2021, 2K and Visual Concepts revealed the first teaser video for WWE 2K22, which will launch within our current fiscal year. In recent weeks, the teams shared a series of behind-the-scenes looks at WWE 2K22, including entrance and move animations, motion capture and facial scanning, and more to come.
• WWE SuperCard offered new content updates, including a John Cena-themed in-game event in June.
• Announced that Tiny Tina’s Wonderlands, a new franchise from 2K and Gearbox, will be released later this fiscal year. The game is an epic adventure full of whimsy, wonder, and high-powered weaponry set in an unpredictable fantasy world where magic, broadswords, and bullets collide. Tiny Tina’s Wonderlands is a full experience with a rich, story-driven co-op campaign and repeatable end-game content.
• Several enhancements were made to Borderlands 3, including the introduction of crossplay functionality for Xbox One, Xbox Series X|S, Mac, Stadia, and PC via Steam and the Epic Games Store. Additionally, new limited-time mini-events were introduced, which culminated in the return of the game’s most popular seasonal event, “Revenge of the Cartels.”
• Released the Borderlands 3: Director’s Cut add-on, which is available for purchase separately and available to download for owners of Borderlands 3 Ultimate Edition or Season Pass 2. The Director’s Cut add-on delivered a brand-new raid boss, story-driven murder mystery missions, daily and weekly challenges with unique themed rewards, and never-before-seen behind-the-scenes content.
• Launched the Sid Meier’s Civilization VI Anthology for Windows PC, which includes Sid Meier’s Civilization VI, all DLC packs, all expansions and the New Frontier Pass.

Private Division:

• Announced that, together with Roll7, it will release OlliOlli World digitally this winter for consoles and PC. This skateboarding action-platformer marks a bold new direction in this critically acclaimed franchise and has received outstanding initial feedback from early media impressions.
• Announced a partnership with Supergiant Games to release a physical edition of Hades for PlayStation and Xbox consoles. Hades is a winner of over 50 “Game of the Year” awards and has received impressive aggregate scores of 93 on Metacritic and 94 on OpenCritic.
• Kerbal Space Program recently celebrated its 10-year anniversary, with new offerings for fans, including merchandise and a documentary video detailing the various achievements of the title as well as its impact on the aerospace industry.
• Announced that it will release Kerbal Space Program Enhanced Edition for PlayStation 5 and Xbox Series X|S this fall. The title will benefit from multiple hardware advancements and developments which allow for an upgraded resolution, improved frame-rate, advanced shaders, better textures, and additional performance improvements. Players who already own Kerbal Space Program Enhanced Edition for Gen 8 consoles are eligible for a free upgrade to the new version of the game upon its release.

T2 Mobile Games:

• Take-Two integrated Socialpoint, Playdots, and Nordeus into newly formed “T2 Mobile Games.” This new structure will help Take-Two’s mobile teams achieve cost synergies and share best practices.
• Many of our mobile games launched new features, challenges, and marketing activations to drive player engagement. Our studios will continue to introduce new enhancements to their games this year to further optimize the player experience.

We can also take a look at the upcoming games from the publisher’s brands. It’s worth mentioning that OlliOlli World has moved from Winter 2021 to Fiscal 2022, indicating a release likely between January and March.

For the sake of comparison, you can check out the results for the previous quarter, which were published in May.