Take-Two Interactive Software announced its financial results for the third quarter of the fiscal year, related to the period between October 2023 and December 2023, on top of an update to sales figures of Grand Theft Auto V, Red Dead Redemption 2, and more.
The publisher mentioned in its financial documents that net bookings were $1.34 billion, down 3% year-on-year. Net Bookings from recurrent consumer spending (microtransactions and subscriptions) were down 7% year-on-year and accounted for 75% of the total.
The company also recorded a net loss of $91.6 million.
We also get the traditional comment from CEO Strauss Zelnick. He mentions that the company is reducing its outlook for the full fiscal year due to the delay of a planned release and more. On top of that, we hear that Take-Two is “currently working on a significant cost reduction program” which certainly sounds ominous.
We achieved solid third quarter results, including Net Bookings of $1.3 billion. Grand Theft Auto V and Grand Theft Auto Online, the Red Dead Redemption series, and Zynga’s in-app purchases, led by Toon Blast, exceeded our expectations, as we launched engaging new content, partnerships, and activations. This was partially offset by some softness in mobile advertising and sales for NBA 2K24
We are reducing our outlook for the year to reflect these factors, as well as a planned release moving out of the fourth quarter, and increased marketing for Zynga’s new hit mobile game, Match Factory!, which we believe will enable us to scale the title meaningfully. Our revised Net Bookings forecast is $5.25 to $5.3 billion.
Our strategy is anchored in creativity, innovation, and efficiency. We are currently working on a significant cost reduction program across our entire business to maximize our margins, while still investing for growth. These measures are incremental to, and more robust than, our prior cost reduction program, and we aim to achieve greater operating leverage as we roll out our outstanding release schedule.
We have always managed Take-Two for the long-term. Our Company’s potential is vast and unique, driven by our creative talent, our owned and controlled IP, and our groundbreaking pipeline for fiscal 2025 and beyond. As we focus on our strategic priorities, we are confident that we will grow our Net Bookings, enhance our profitability, and continue to deliver value for our shareholders.
As usual, Take-Two shared an update about the sales of its most successful games.
Grand Theft Auto V has shipped over 195 million units (with the total for the franchise to over 420 million units cumulatively) and Red Ded Redemption 2 shipped over over 61 million units as of September 2023 (86 million units cumulatively for the franchise as a whole).
Both games keep growing steadily compared to the latest figures shared in November, which were respectively at over 190 million and over 57 million units.
We also learn that Borderlands 3 has grown from 18 to over 19 million units to date, while NBA 2K24 has sold over 7 million units.
As per tradition in the past few quarters, Take-Two published a snapshot of its pipeline of games in development that it wants to release by March 2026. The numbers have not changed from the version presented three months ago, but more games have been revealed, including the massively anticipated Grand Theft Auto 6.
As usual, it’s unlikely that all of these games will be released as some may be delayed or canceled, while more may be added.
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