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Take-Two Interactive Software, Inc. (TTWO)

- NASDAQ
  • Nov. 15, 2013, 2:20 PM
    • After rising 52% Y/Y in September on the back of huge sales for Take-Two's (TTWO -0.2%) Grand Theft Auto V, NPD estimates U.S. physical retail video game sales only rose 12% Y/Y in October ahead of this month's PlayStation 4 (launching today) and Xbox One (launching on Nov. 22) debuts. GTA V was once more the bestselling title.
    • GameStop (GME -2.2%) is selling off on the wake of NPD's numbers, and so is Electronic Arts (EA -5.7%). Investors in the latter might not be pleased Madden NFL 25 (#2 in September and #1 in August) and FIFA 14 (#5 in September) fell out of the NPD's list of the ten top-selling games. EA's Battlefield 4, which launched near the end of the month to muted reviews, came in at #4.
    • Take-Two's NBA 2K14 (#3 in September) and WWE 2K14 respectively came in at #7 and #10.
    • Activision's (ATVI - unchanged) Skylanders: Swap Force was #8 on the list. Diablo III, which was #4 in September, dropped out of the top-10.
    • Hardware sales fell 8% ahead of the PS4/Xbox One launches, and only totaled $171.7M. Accessories sales rose 1%.
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  • Oct. 29, 2013, 5:18 PM
    • Following a halt, Take-Two (TTWO) is moderately higher AH after blowing away FQ2 estimates on the back of huge Grand Theft Auto V sales, and issuing strong FQ3/FY14 guidance. However, investors were expecting a big quarter in light of industry data and Take-Two's prior announcements.
    • Take-Two, whose annual results have had a strong boom-bust quality to them over the years (thanks to a dependence on big game launches), now says it's confident its can achieve non-GAAP profitability in FY15 (ends March '15) and every subsequent year "for the foreseeable future."
    • Nearly 29M GTA V units have been sold thus far; that figure surpasses lifetime sales of Grand Theft Auto IV. Promotional activity for the game contributed to a 54% Y/Y increase in sales/marketing spend to $101.3M. R&D spend +37% to $26.5M, G&A +40% to $43M.
    • Digital sales totaled $105.5M, or 8% of revenue.
    | 2 Comments
  • Oct. 29, 2013, 4:23 PM
    • YELP expects Q4 revenue of $66M-$72M, above a $64.8M consensus. Shares -1.5% AH. (Q3 results, PR)
    • Take-Two (TTWO) expects FQ3 revenue of $650M-$700M and EPS of $1.20-$1.35, largely above a consensus of $640.9M and $1.22. FY14 (ends March '14) guidance is for revenue of $2.2B-$2.3B and EPS of $3.50-$3.75, above a consensus of $2.03B and $2.80. Shares are halted. (FQ2 results, PR)
    • Electronic Arts (EA) expects FQ3 revenue of $1.65B and EPS of $1.22, below a consensus of $1.75B and $1.32. However, FY14 (ends March '14) guidance is stronger: revenue of $4B and EPS of $1.25 vs. a consensus of $4.02B and $1.22. Shares +2% AH. (FQ2 results, PR).
    • Flextronics (FLEX) expects FQ3 revenue of $6.5B-$6.9B and EPS fo $0.21-$0.25 vs. a consensus of $6.79B and $0.25. Shares -1.6% AH. (FQ2 results, PR)
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  • Oct. 29, 2013, 4:18 PM
    • Take-Two (TTWO): FQ2 EPS of $2.49 beats by $0.84.
    • Non-GAAP Net Revenue of $1.27B beats by $433.29M. (PR)
    | 4 Comments
  • Oct. 18, 2013, 11:15 AM
    • Thanks to Grand Theft Auto V's (TTWO -0.6%) blockbuster launch, U.S. retail physical video game sales rose 52% Y/Y in September to $754M, per NPD (or +40% if one includes PC game sales). Sales were up 21% in August after falling 19% in July.
    • GTA V, whose global retail sales topped $1B within three days of its Sep. 17 launch, single-handedly accounted for over half of NPD's September figure. Electronic Arts' (EA +0.6%) Madden NFL 25 was #2 on NPD's bestseller list after coming in first in August, and FIFA 14 was #5. Take-Two's NBA 2K14 was #3, and Activision's (ATVI -1.1%) Diablo III was #4.
    • Hardware sales -13% Y/Y to just $183M ahead of the Xbox One/PS4 launches. Accessories +2% to $142M. GameStop (GME +1.5%) is higher after initially trading near breakeven.
    • NPD also reports U.S. digital game revenue rose 6% Y/Y to $970M, albeit with a mix shift away from traditional fare. Downloadable content sales for console-type games fell 23% to $198M, and subscription MMOs (such as Activision's World of Warcraft) lost 300K subs.
    • However, mobile game sales rose 14% to $266M, social games rose 16% to $176M, and free-to-play MMOs such as EA's Star Wars: The Old Republic added 700K users. That first two figures spell bigger addressable markets for Zynga (ZNGA +1.8%) and Glu (GLUU +4.1%), respectively; each has lost some share this year.
    | 2 Comments
  • Sep. 27, 2013, 10:13 AM
    • China's State Council says gaming consoles, banned since 2000, will be allowed for sale provided they're approved by the Ministry of Culture. The decision opens the door for Microsoft (MSFT +1.1%), Sony (SNE -0.7%), and Nintendo (NTDOY.PK) to begin officially selling their hardware in the Middle Kingdom.
    • Unofficially, the hardware hasn't been hard to find on the black market, with sellers typically hawking modified systems that support pirated games. However, the government's decision should open the door for console makers and game developers (EA, ATVI, TTWO) to formally market their wares, replete with Chinese-language translations.
    • Aside from piracy, China's well-established online gaming scene will serve as a challenge for console makers and game developers. Some of the online gaming firms they'll be competing against: TCEHY.PK, NTES, GA, GAME, PWRD, CYOU.
    • Microsoft just formed a 49:51 console JV with local firm BesTV.
    • Previous: Chinese government reportedly planning to end console ban
    | 5 Comments
  • Sep. 26, 2013, 1:05 AM
    • Less than a week after Grand Theft Auto V raced to $1B in retail sales within three days, Take-Two's (TTWO) Rockstar Games unit has provided details about Grand Theft Auto Online, the online world that will be available next week to buyers of the latest update to the edgy franchise.
    • Grand Theft Auto Online will be free to GTA V buyers, but (in the spirit of the times) will be monetized via virtual currency/goods purchases. Rockstar: "You don’t have to spend real money to attain the cars, guns, clothes, flash and style of a high-roller in [the fictional city of] Los Santos, but can if you wish to get them a little quicker."
    • A multiplayer mode allows up to 16 users can play together at a time. In addition to races, jobs, and "open-world crime and chaos," users will also be able to partake in tennis, golf, and base jumping, "all for cash and reputation."
    • Thanks to the strong early reception for Grand Theft Auto V, Take-Two's Sep. quarter EPS consensus has risen to $1.42 from $1.35. Can Grand Theft Auto Online provide a lift to future quarters?
    | 1 Comment
  • Sep. 20, 2013, 12:28 PM
    • Take-Two (TTWO) estimates Grand Theft Auto V "has achieved worldwide retail sales of more than $1 billion during its first three days on sale." The company thinks no "entertainment property" (movies included) has hit that milestone as quickly. (PR)
    • Take-Two announced on Wednesday it believes first-day GTA V retail sales topped $800M.
    • GTA V reviews/estimates
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  • Sep. 18, 2013, 6:40 PM
    • Take-Two (TTWO) wrapped up its annual meeting (webcast) a little while ago. The company has issued a PR noting all existing directors were re-elected, including Brett Icahn (Carl Icahn's son). and that some run-of-the-mill shareholder proposals were approved.
    • Shares finished regular trading up 1.2% (nearly in-line with the Nasdaq) after the game developer estimated retail Grand Theft Auto V sales topped $800M in the game's first 24 hours of availability.
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  • Sep. 18, 2013, 3:57 PM
    • Take-Two (TTWO +1.4%) estimates global Grand Theft Auto V retail sales topped $800M in the game's first 24 hours of availability. (PR)
    • Shares popped on the news, but quickly gave back their gains.
    • Reviews for GTA V have been glowing, but investors and analysts were already expecting the game to be a hit.  Wedbush thinks GTA V will generate $1.57B in revenue for Take-Two over its lifetime; that figure excludes cuts taken by retailers and others.
    | 7 Comments
  • Sep. 17, 2013, 2:28 PM
    • Were expectations too high? Even though Grand Theft Auto V's launch day has yielded plenty of long lines and a Metacritic score of 98/100, Take-Two (TTWO -2.3%) has given back its premarket gains, and is now down 4% over the last two days.
    • Reviewers glow about GTA V's movie-like realism, use of multiple protagonists (or are they antagonists?), and freewheeling plot lines. Polygon: "GTA V is a bridge between games' present and the future." Joystiq: "The open-ended gameplay remains a showpiece for the vast amount of content that can be poured into a virtual world."
    • Wedbush's Michael Pachter thinks GTA V will see 20M-25M unit sales over its lifetime, and generate up to $1.57B in revenue for Take-Two. But as Pachter notes, Take-Two shares have already priced in a lot of good news.
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  • Sep. 17, 2013, 7:58 AM
    • Take Two's (TTWO) Grand Theft Auto V launched today with expectations it will make more than $1B in sales a year.
    • Budget and development costs are estimated to be $270M.
    • The highly-anticipated launch of the gaming title is expected to be increase the number of call-in sick days from gamers, a development which GameStop (GME) hopes will also develop into increased store traffic.
    • Reviews: VentureBeat, GameSpot
    • TTWO +3.5% premarket
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  • Sep. 13, 2013, 12:25 PM
    • NPD estimates U.S. physical retail video game sales rose 21% Y/Y, reversing July's 19% decline as new titles stoked demand ahead of this fall's console refreshes. Games launched in August accounted for over half of all sales, and their high price tags resulted in ASPs rising 25%.
    • GameStop (GME +5%) investors are pleased with the numbers. So are Electronic Arts (EA +2.7%), and Take-Two (TTWO +3%) investors; while still important, NPD's figures matter a little less than they used to for game developers, thanks to a shift towards digital revenue streams.
    • Not surprisingly, hardware sales fell 40% Y/Y (worse than July's 34% drop), as gamers wait for the chance to buy a PS4 or Xbox One. Sales of accessories, including Skylanders (ATVI +0.6%) toys, rose 7% after falling 3% in July. Nintendo's (NTDOY.PK) 3DS was the best-selling console; 6.47M units of the handheld console have been sold in the U.S. in 2013.
    • Though its first-week sales disappointed, EA's Madden NFL 25 was the month's best-selling title. Take-Two's anticipated Grand Theft Auto V launches on Tuesday.
    • Analysts expect GTA V to pull in $1B+ in sales in Take-Two's FY14 (ends March '14). Pac Crest downgraded Take-Two earlier this week, arguing (among other things) the company has an "empty pipeline" and that there's "potential for changes" in Take-Two's relationship with GTA franchise developer Rockstar Games.
    | 1 Comment
  • Sep. 11, 2013, 9:36 AM
    • RF Micro (RFMD +0.4%) has been received a two-notch upgrade of sorts from Raymond James, getting lifted to Strong Buy from Market Perform. Rival Skyworks (SWKS -0.9%) has been upgraded to Strong Buy from Outperform.
    • Nokia (NOK +3%) has been upgraded to Outperform by RBC, and has received a two-notch upgrade to Buy by Berenberg. The company has already received a slew of upgrades since the Microsoft deal was announced.
    • Himax (HIMX +4%) has been started at Outperform by Northland.
    • QLogic (QLGC +1.2%) has been started at Overweight by Barclays. Rival Emulex has been started at Equal Weight.
    • Take-Two (TTWO -2.8%) has been downgraded to Sector Perform by Pac Crest.
    • iGate (IGTE +6.5%) has been upgraded to Buy by Janney.
    • Computer Sciences (CSC +1.3%) has been started at Positive by Susquehanna.
    | 2 Comments
  • Aug. 22, 2013, 10:49 AM
    • Game developers Electronic Arts (EA +2.8%), Activision (ATVI +1.4%), and Take-Two (TTWO +2.4%) are all outperforming after GameStop beat Q2 estimates, issued a strong Q3 same-store sales outlook, and made upbeat comments about holiday season demand.
    • EA and Take-Two are both near their 52-week highs.
    • GameStop's numbers come shortly after Microsoft and Sony announced holiday season game lineups for the Xbox One and PlayStation 4, prior to the start of the Gamescom conference. Sony also boasted PS4 pre-orders have topped 1M.
    • EA made several game-related announcements on Tuesday.
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  • Aug. 9, 2013, 9:41 AM
    • Cisco (CSCO - unchanged) has been upgraded to Neutral by JPMorgan ahead of its Aug. 14 FQ4 report.
    • Baidu (BIDU +2.5%) has been upgraded to Buy by Citi following a 50%+ run-up since early July.
    • SunEdison (SUNE -2.4%) has been cut to Hold by Ardour Capital two days after posting a mixed Q2 report.
    • Accenture (ACN +0.7%) has been upgraded to Outperform by Baird.
    • Orbitz (OWW -0.9%) has been cut to Neutral by Lazard following yesterday's huge post-earnings gains.
    • inContact (SAAS -8%) has been cut to Hold by Benchmark following its Q2 revenue miss.
    • Take-Two (TTWO +1.3%) has been started at Buy by Benchmark.
    • Ixia (XXIA +1.9%) has been started at Buy by Jefferies.
    | 1 Comment
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Company Description
Take-Two Interactive Software, Inc. is a developer, marketer and publisher of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two wholly-owned labels Rockstar Games and 2K.