Take-Two Announces “Strong” Financial Results & Increases Full Fiscal Year Prediction

Today Take-Two Interactive Software announced its financial results for the third quarter of the fiscal year 2022, which ended on Dec. 31, 2021.

Below you can check out a summary of the company’s performance, which is defined “strong” in the press release.

• GAAP net revenue increased 5% to $903.3 million
• GAAP net income per diluted share was $1.24
• GAAP net cash provided by operating activities for the nine-months ended December 31, 2021 was $19.2 million
• Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the nine-months ended December 31, 2021 was $278.9 million
• Net Bookings grew 6% to $866.1 million

We also hear that the outlook for the full fiscal year for net bookings has been raised to between $3.37 billion and $3.42 billion.

Cited among the major contributors to the results are NBA 2K22 and NBA 2K21, Grand Theft Auto Online and Grand Theft Auto V, Grand Theft Auto: The Trilogy – The Definitive Edition, Red Dead Redemption 2 and Red Dead Online, Grand Theft Auto: San Andreas, Borderlands 3, and Two Dots.

The press release also included the traditional comment from Chief Executive Officer Strauss Zelnick, who boasted about the results and talked about the acquisition of Zynga, on top of delivering the usual tease about the “pipeline of new intellectual properties and eagerly anticipated sequels” which he does basically every quarter.

“Our third quarter performance was outstanding, highlighted by Net Bookings of $866 million, which exceeded our expectations and increased 6% over last year. Fiscal 2022 is shaping up to be another strong year for Take-Two, and we are once again raising our Net Bookings guidance for the year to $3.37 billion to $3.42 billion.

“We remain highly optimistic about the future of the interactive entertainment industry and our multi-year growth trajectory. From investing in talent to acquiring some of the industry’s leading creative studios and announcing our transformational agreement to combine with Zynga, we are taking exciting steps to diversify our business, gain market share and enhance our positioning as one of the world’s top three pure-play publishers of interactive entertainment. Together with our incredible pipeline of new intellectual properties and eagerly anticipated sequels, we are confident that we are positioning our business for long-term success and shareholder value creation.”

We also get a series of highlights from Take-Two’s brands.

Take-Two:

• On January 9^th, entered into a definitive agreement, under which Take-Two will acquire all of the outstanding shares of Zynga in a cash and stock transaction valued at $9.86¹ per Zynga share, based on the market close as of January 7, 2022, with a total enterprise value of approximately $12.7 billion. Under the terms and subject to the conditions of the agreement, Zynga stockholders will receive $3.50 in cash and $6.36¹ in shares of Take-Two common stock for each share of Zynga common stock outstanding at the closing of the transaction. The transaction, which is expected to be completed during the first quarter of Take-Two’s Fiscal Year 2023, ending June 30, 2022, is subject to the approval of both Take-Two and Zynga stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.

Rockstar Games:

• On November 11^th, Rockstar Games launched digitally Grand Theft Auto: The Trilogy – The Definitive Edition featuring across-the-board upgrades for all three games, including graphical improvements and modern controls for all three titles, while still maintaining the classic and distinct aesthetic of the original games. Grand Theft Auto: The Trilogy – The Definitive Edition launched physically for consoles on December 17^th and will release for iOS and Android devices in the first half of calendar 2022.
• Released new free content updates for Grand Theft Auto Online:
  • Rockstar Games continued to provide an array of free content for their vast and growing online communities. To celebrate Halloween, Grand Theft Auto Online added a series of random events to shock and surprise players, including driverless phantom killer cars, superhuman slashers, UFOs that bend the laws of physics, and more, including bonuses on Alien Survival modes, and a new Arcade game.
  • On December 15^th, launched The Contract, an all-new Grand Theft Auto Online story as players, whether solo or in a group, team up with returning Grand Theft Auto V protagonist Franklin Clinton and track down missing new music from Grammy-Award winning artist, legendary producer and this year’s Super Bowl half-time show headliner, Dr. Dre. The update also features new co-op story missions with Franklin and sidekick Lamar Davis as playable characters; a new social space – Record A Studios – where players can hang out with Dr. Dre and special guests; a new radio station hosted by global pop stars ROSALÍA and Arca called Motomami Los Santos, named after ROSALÍA’s forthcoming album; new updates to two existing radio stations from L.A. DJ royalty, DJ Pooh and Big Boy; six exclusive new tracks by Dr. Dre which officially released to streaming services this past Friday; and new purchasable properties, vehicles, and more.
• Throughout the quarter, Red Dead Online received a series of updates, including the fourth installment of The Quick Draw Club and holiday-themed content including All Hallows’ Call to Arms, The Halloween Pass 2, and the Holiday Call to Arms.
• On March 15^th, Rockstar Games will launch Grand Theft Auto V for PlayStation 5 and Xbox Series X|S, bringing the blockbuster entertainment experience to an unprecedented third console generation. This new release features new graphics modes with up to 4K resolution, up to 60 frames per second, texture and draw distance upgrades, HDR options and ray-tracing, as well as faster loading times, immersive 3D audio, platform-specific features and much more. Also coming in March is the standalone version of Grand Theft Auto Online, which will be free on PlayStation 5 for the first three months, enabling new players to join the thriving community on the latest hardwarefor new-generation consoles.

2K:

• On November 9^th, acquired elite3d, one of the world’s leading creative studios dedicated to innovative 2D and 3D artwork for the video game industry. Based in Valencia, Spain, the newly acquired team will rebrand to form a second office for 2K’s wholly owned developer 31st Union and will also develop a new 2K Publishing location, including a focus on its Global Services division. 2K also acquired TURIA GAMES, S.L. in Valencia, a development studio co-owned by the founders of elite3d. Financial terms and employment numbers related to the acquisition were not disclosed.
• Launched Seasons 2, 3 and 4 for NBA 2K22, with each Season featuring new music, new content, and seasonal updates across MyCAREER, MyTEAM, and The W modes.
• On October 19^th, launched the NBA 2K22 Arcade Edition on Apple Arcade. The game offers the all-new Association mode, where players can be the GM or Head Coach of their favorite NBA Franchises and build their own NBA dream teams, as well as other popular modes including MyCOURT, Online Multiplayer, and MyCAREER.
• In anticipation of its early March release, 2K announced that Rey Mysterio® will star on the cover of WWE 2K22 in celebration of his 20^th anniversary as a WWE Superstar. WWE 2K22 offers exciting new features and innovation to establish the title as the most impressive WWE 2K experience to date. Updates include a redesigned gameplay engine, new controls, stunning graphics, immersive presentation, a new WWE 2K Showcase, new fan-requested game modes including MyGM and MyFACTION, as well as MyRISE, Universe Mode, and the Creation Suite.
• On November 17^th, 2K launched WWE SuperCard Season 8, offering the new Survivor game mode, three new card tiers, a slew of new WWE Superstars, and multiple gameplay upgrades.
• On October 14^th, 2K and HB Studios launched the PGA TOUR 2K21 Baller Edition, which includes the base game, all previously released DLC courses and game modes, an assortment of the hottest gear from Clubhouse Pass Season One, holiday gear, novelty putters, and the Golden Touch Pack featuring a gold putter and driver. The Baller Edition also features the 2K/adidas CODECHAOS MyPLAYER Pack featuring adidas CODECHAOS BOA golf shoes and custom 2K/adidas gear, including a sport performance polo, Ultimate365 pants, and tour hat, designed by adidas Golf exclusively for PGA TOUR 2K21.
• On November 12^th, 2K and Gearbox released the Borderlands 3 Ultimate Edition in physical disc form for PlayStation 5 and Xbox Series X. The offering is optimized to take full advantage of the new-gen hardware’s processing power, and includes the award-winning base game plus all six content add-ons and the full collection of bonus cosmetic packs.
• On November 18^th, 2K and Gearbox released Vault Card 3: Bunker Masters for Borderlands 3, the final of three Vault Cards included in the Director’s Cut add-on. The release included new fantasy-themed cosmetic items and powerful Legendary loot, driving further excitement for the similarly fantasy-fueled Tiny Tina’s Wonderlands coming March 25, 2022.
• On November 9^th, 2K and Gearbox Software launched Tiny Tina’s Assault on Dragon Keep: A Wonderlands One-Shot Adventure as a standalone purchase. This release laid positive groundwork for the upcoming launch of Tiny Tina’s Wonderlands.
• In December 2021, members of the all-star celebrity cast of Tiny Tina’s Wonderlands appeared on stage at The Game Awards to introduce the game’s trailer. Additionally, 2K and Gearbox Software provided players with a slew of new gameplay information, including the reveal of new classes, fantastical new environments, fresh details on guns and damage types, and much more.

Private Division:

• On November 15^th,acquired Roll7, a London based BAFTA award-winning video game developer best known for the OlliOlli Series. The studio is preparing for the release of OlliOlli World and has additional unannounced projects in development. Private Division will support these future endeavors and empower Roll7 to continue creating their signature “flow-state gaming” experiences to achieve commercial and critical success.
• On February 8^th, Roll7 and Private Division will launch OlliOlli World, the skateboarding action-platformer digitally for PlayStation 4, PlayStation 5, Xbox One, Xbox Series X|S, PC via Steam and Nintendo Switch. OlliOlli World marks a bold new direction for the OlliOlli franchise and has received much critical praise for the unique art style and tight gameplay mechanics. Reviews for the game have been positive, with multiple sites denoting the title as a “Recommended” or “Essential” purchase, stellar review scores from many major outlets, and the game currently earning an 85 on OpenCritic and 84 on Metacritic respectively. The game comes with diverse and rich customization options, allowing players to be whoever they want to be; body type, skin tone, and hair are all customizable.

T2 Mobile Games:

• On October 11^th,Nordeus released Top Eleven 2022, the latest installment of their mobile title that is the world’s most successful soccer management game of all time. Top Eleven 2022 delivers significant updates to the gameplay and soccer management experience.

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