Take-Two Interactive 3Q profit more than doubles
NEW YORK (AP) — Take-Two Interactive Software said Monday its profit climbed in the fiscal third quarter on strong sales of the newest games in its "Grand Theft Auto," ''NBA 2K," and "WWE 2K" franchises.
Excluding one-time items the video game company's profit more than doubled, and revenue grew 90 percent. Take-Two also raised guidance for the rest of its fiscal year ending in March, but its fourth-quarter guidance fell short.
The company's adjusted income grew to $210.7 million, or $1.70 per share, from $78.8 million, or 67 cents per share, a year ago. Adjusted net revenue rose to $767.7 million from $405 million.
Take-Two's adjusted results include revenue and related costs from games with online components or other elements that are not available when the title goes on sale. These can include extra downloadable content that video game companies often release well after the main game is sold.
Take-Two said "Grand Theft Auto V," ''NBA 2K14," and "WWE 2K14" were the biggest contributors to its revenue for the quarter ended in December. Adjusted revenue from digitally delivered content rose 42 percent because of the "Grand Theft Auto" and "NBA2K" franchises as well as "Borderlands 2" and "BioShock Infinite."
Analysts expected earnings of $1.40 per share and $707.4 million in revenue, according to FactSet.
Take-Two Interactive Software Inc. shares lost 28 cents to $18.90 during the day and fell another 39 cents, or 2.1 percent, to $18.51 in after-hours trading.
For the full year, Take-Two is now forecasting adjusted earnings per share of $4.15 to $4.25 and net revenue of $2.35 billion to $2.38 billion. Its previous guidance called for income of $3.50 to $3.75 per share on revenue of $2.2 billion to $2.3 billion. Analysts expect $3.84 per share and $2.33 billion, on average.
The company expects to break-even or earn up to 10 cents per share in the fourth quarter on adjusted revenue of $170 million to $200 million. Analysts expect a quarterly profit of 12 cents per share and revenue of $212.1 million.