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Take-Two Interactive Software, Inc. (TTWO)

  • Mon, Aug. 10, 4:47 PM
    • Take-Two Interactive (NASDAQ:TTWO) has dropped 3.2% after hours, adding on to today's 1.7% decline, as its fiscal Q1 missed profit expectations despite growing non-GAAP revenues by more than double.
    • The company swung to a net profit of $0.31/share, from a year-ago loss of $0.14/share, in non-GAAP terms.
    • Biggest contributors to revenue were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K15, Borderlands: The Handsome Collection and WWE 2K15. Digitally delivered content revenue was up 139% to $254M, and 36% of that was recurrent spending, including virtual currency and downloadable add-ons.
    • Next in the pipeline this fall: NBA 2K16, WWE 2K16, and XCOM 2.
    • Cash and short-term investments grew to $1.19B at quarter's end.
    • Press Release
    | Mon, Aug. 10, 4:47 PM | Comment!
  • Fri, Jul. 17, 5:41 PM
    • Videogame sales grew in June, with new physical games and hardware up 18% in the U.S. Y/Y, to $869.4M, according to NPD. That's a rebound from May's 13% decline.
    • The industry showed growth in all three major areas: Hardware sales were $313.1M (up 8%); accessories were $210.7M (up 34%); and game software sales were very strong at $345.5M (up 21%, though against a weaker 2014 comp) by calling on the Batman. The settling-in of next-gen consoles continues, as it was the fourth month of Y/Y software increases.
    • Batman: Arkham Knight (TWX -1.4%) led the software charts and became the year's second-best seller out of the gate, behind another Warner Bros. release, Mortal Kombat X.
    • June was Warner's month: Its other titles Lego Jurassic World, The Witcher 3: Wild Hunt and Mortal Kombat X joined Batman in the top 10 at Nos. 3, 4 and 8 respectively. Warner's dollar sales are up 217% vs. the first half of 2014, making it the top corporate publisher this year, says NPD's Liam Callahan.
    • In longer-term holdouts, Minecraft (NASDAQ:MSFT) came in at No. 6, Grand Theft Auto V (TTWO +4%) was No. 7, Take-Two's NBA 2K15 was No. 9 and Call of Duty: Advanced Warfare (NASDAQ:ATVI) No. 10.
    • Next-gen consoles like PS4 and Xbox One led the way in hardware growth, up 15%. The PS4 (SNE +0.5%) led console sales again, the company said, as it has for every month this year except for April.
    | Fri, Jul. 17, 5:41 PM | 6 Comments
  • Thu, Jul. 16, 3:21 PM
    • Digital game sales crested $1B in revenues in June (up 18% Y/Y), SuperData Research reports -- and most of that is headed to big-name projects.
    • Call of Duty: Advanced Warfare (ATVI +0.4%) topped the firm's digital console earnings chart for June, followed by Grand Theft Auto V (TTWO +1.8%).
    • The overall market was robust, said SuperData chief Joost van Dreunen: Mobile revenues that usually slip in summer increased 4% M/M in June (and 20% Y/Y) to $367M, while console and PC gaming is up 30% Y/Y to $314M.
    • Following up Call of Duty and GTA V on the console chart was Bethesda Softworks' MMORPG Elder Scrolls Online: Tamriel Unlimited and Batman: Arkham Knight (TWX +0.7%).
    | Thu, Jul. 16, 3:21 PM | 3 Comments
  • Wed, Jun. 24, 9:54 AM
    • Take-Two (TTWO +3.3%) and Electronic Arts (EA +2.4%) both rose this morning as Jefferies issued reports raising each firm to Buy, from Hold, with an eye toward the advancement of the new game console cycle.
    • With around 48M-49M new-generation consoles in the wild at year's end, annual growth would be about 69%, and there might be 100M installed units by the end of 2017 -- leading to some sales capitalization from both firms off of fixed development costs.
    • "EA looks well positioned against two multi-year tailwinds: faster than expected console sales and the transition to higher-margin digital revenue," Brian Pitz wrote. He raised EA's price target to $80, from $58. Shares are currently trading at $68.20.
    • Brian Fitzgerald is looking for continued margin expansion at Take-Two and raised its target to $35 from $29. Shares are currently at $28.92.
    | Wed, Jun. 24, 9:54 AM | 1 Comment
  • Tue, May 19, 12:20 PM
    • Take-Two Interactive Software (NASDAQ:TTWO) is soaring, up 15.5%, after an earnings report where it provided strong guidance for the coming quarter and counted the successes of titles like Grand Theft Auto V and NBA 2K15.
    • Sterne Agee upgraded shares from Neutral to Buy today, setting a raised price target of $32. Shares are trading currently at $27.94.
    • Other analysts noted what looked like soft full-year guidance seemed in line with expectations considering the lack of a full Rockstar Games release. Wedbush's Michael Pachter said facing an "underwhelming" release slate, the company's guidance (EPS of $0.75-$1.00 and non-GAAP revenues of $1.3B-$1.4B) fit his expectations, and Wedbush raised its target to $26 from $24.
    • Credit Suisse's Stephen Ju pointed to increased digital sales (up 66%) as a positive mix shift, but that the shares have a balanced risk-reward profile. The firm raised its target to $32 from $28.
    • Previously: Take-Two up 7.3% after earnings; details pipeline, Asia plans (May. 18 2015)
    | Tue, May 19, 12:20 PM | Comment!
  • Tue, May 19, 9:15 AM
    | Tue, May 19, 9:15 AM | Comment!
  • Mon, May 18, 5:44 PM
    • Take-Two Interactive (NASDAQ:TTWO) is up 7.3% after hours following its fiscal Q4 and year-end results, where some revenue deferrals made for a heavy GAAP loss but boosted strong guidance for Q1. The company's forecast for the coming year was also to the downside of expectations.
    • Elaborating on forecasting on its earnings call, CEO Strauss Zelnick noted that despite a slow pipeline from Rockstar Games, they're hard at work on a number of upcoming titles: "Rockstar today is different from the Rockstar of a few years ago," he said noting that the release of Grand Theft Auto Online has changed its world as "a living, breathing entity" that generates revenue and profits on an ongoing basis.
    • The company increased its buyback authorization to 10M shares; on the call, management noted that buybacks aren't anticipated in its expectations for a fiscal 2016 EPS of $0.75-$1.00.
    • Regarding Asia Pacific, Zelnick said it's a "very significant area of focus for us," pointing to NBA 2K's monthly revenues/profits. "Now we feel a little more confident about financial risk because we have a good deal of experience in the region ... I think in the Chinese market, it's likely that we -- and our competitors -- will have local partners. The Chinese government wants us to work with strong local partners, and Tencent and others are proving to be exceedingly strong partners for us."
    | Mon, May 18, 5:44 PM | Comment!
  • Mon, May 18, 5:37 PM
    | Mon, May 18, 5:37 PM | 8 Comments
  • Mon, May 18, 4:28 PM
    • Take-Two Interactive (NASDAQ:TTWO) spent the last 10 minutes sinking into the close to finish -2%, just before an earnings release for its fiscal Q4 showing a miss on revenues despite 83% growth.
    • GAAP results showed a net loss of $2.99/share, reflecting some net revenue and cost of goods deferrals. On a non-GAAP basis, EPS was $0.49 vs. an expected $0.28 and against last year's $0.21.
    • Revenue from digitally delivered content was up 66% Y/Y, to $202.5M. Biggest contributors to revenue for Q4: Grand Theft Auto V (freshly released for PC), Grand Theft Auto Online, Evolve, NBA 2K15 and Borderlands: The Handsome Collection.
    • It's increased its buyback authorization up to an aggregate 10M shares.
    • The firm's guiding high for its fiscal Q1, for non-GAAP revenues of $325M-$350M vs. $207M expected, and for EPS of $0.25-$0.35 vs. an expected -$0.01. For fiscal 2016, the company expects non-GAAP net revenue of $1.3B-$1.4B, lower than expected $1.82B, and EPS of $0.75-$1.00 vs. an expected $1.87.
    • Conference call at 4:30 p.m. ET.
    • Press Release
    | Mon, May 18, 4:28 PM | 6 Comments
  • Fri, Mar. 13, 5:15 PM
    • NPD estimates U.S. physical retail game sales rose 7% Y/Y in February to $338.9M, up from January's 5% growth and better than expected. Hardware sales rose 10% to $378.2M, as next-gen console demand remains healthy. Superdata Research estimates digital game revenue rose just 2% to $995M, thanks to weak mobile and social game sales.
    • Nintendo (OTCPK:NTDOY) had a good month: The recently-refreshed 3DS XL handheld was February's top-selling console - Ninetendo says 394K 3DS units were sold - and The Legend of Zelda: Majora's Mask 3D (launched on Feb. 13) topped NPD's game rankings.
    • Take-Two (NASDAQ:TTWO) also did well: Evolve (launched on Feb. 10) was #2 on NPD's list, GTA V came in at #5 (down from January's #3) ahead of its March 24 PC launch, and NBA 2K15 was at #6 (down from #5). Take-Two recently said it was "very pleased" with Evolve's launch.
    • Activision's (NASDAQ:ATVI) Call of Duty: Advanced Warfare fell two spots to #4, while Destiny (#9 last month) fell out of the top-10. Electronic Arts' (NASDAQ:EA) Madden NFL 15 and FIFA 15 also dropped out.
    • Piper observes Take-Two and Activision's NPD sales were respectively up 72% and 16% Y/Y in February, and that EA's were down 32% over the first two months of 2015. It maintains Overweight ratings on all 3 firms.
    • Take-Two rose 3.9% in regular trading thanks to the numbers. GameStop (NYSE:GME) also got a lift, rising 3.5%. Activision rose 0.9% and EA rose 0.4%.
    | Fri, Mar. 13, 5:15 PM | 5 Comments
  • Wed, Feb. 4, 2:23 PM
    • "While Take-Two (TTWO -2.1%) has some of the strongest video game franchises, the stock suffers from lack of visibility in the release schedule and choppy earnings," writes BMO, reacting to the company's FQ3 beat. Nonetheless, the firm thinks Take-Two can now deliver sustained profitability, thanks to the GTA franchise's growth, recurring revenue streams, and the popularity of franchises such as Borderlands, BioShock, and Red Dead.
    • Likewise, Macquarie praises Take-Two's execution, but says it's "somewhat blind" about its FY16 (ends March '16) performance due to a lack of game release visibility. The only titles Take-Two has set release schedules for beyond March are Sid Meier's Starships (spring) and Battleborn (somewhere in FY16).
    • Macquarie thinks Take-Two will launch a new Red Dead title in FY16, but admits it's just speculating based on prior release timings. Wedbush doubts a Red Dead game will launch in FY16, given a lack of teasers/announcements to date.
    • Though selling off today, shares remain well above where they traded in October.
    • FQ3 results, guidance/details
    | Wed, Feb. 4, 2:23 PM | 3 Comments
  • Tue, Feb. 3, 5:37 PM
    • Top gainers, as of 5:15 p.m.: ENTR +7.8%. MXL +5.6%. CRMD +5.0%. DWTI +4.7%. TTWO +4.6%.
    • Top losers, as of 5:15 p.m.: MYGN -15.4%. PLNR -8.5%. BC -8.4%. CMG -6.9%. WTW -5.8%.
    | Tue, Feb. 3, 5:37 PM | 3 Comments
  • Tue, Feb. 3, 4:30 PM
    • Take-Two's (NASDAQ:TTWO) digitally-delivered content sales rose 64% Y/Y in FQ2 to $217.2M (23% of total revenue). Recurrent revenue streams such as virtual currency, downloadable add-on content, and online games (heavily linked to Grand Theft Auto V) were up 23%, and made up 36% of digital revenue.
    • For seasonally weak FQ4, Take-Two expects revenue of $410M-$460M and EPS of $0.15-$0.25 vs. a consensus of $437.4M and $0.25. FY15 guidance has been hiked due to the FQ3 beat.
    • Not surprisingly, the titles making the biggest FQ3 revenue contributions were "Grand Theft Auto V and Grand Theft Auto Online, NBA® 2K15, WWE® 2K15, Borderlands®: The Pre-Sequel, and Sid Meiers Civilization®: Beyond Earth" Evolve launches on Feb. 10, and Sid Meier's Starships in the spring. GTA V arrives on PCs on March 24.
    • Operating expenses rose 36% Y/Y to $187.5M. Sales/marketing spend totaled $96.9M, G&A $53.6M, and R&D $31.2M.
    • Shares have made new 52-week highs in AH trading.
    • FQ3 results, PR
    | Tue, Feb. 3, 4:30 PM | 1 Comment
  • Tue, Feb. 3, 4:11 PM
    • Take-Two Interactive Software (NASDAQ:TTWO): FQ3 EPS of $1.87 beats by $0.35.
    • Revenue of $953.97M (+24.3% Y/Y) beats by $156.31M.
    • Shares +7%.
    • Press Release
    | Tue, Feb. 3, 4:11 PM | 4 Comments
  • Fri, Jan. 16, 10:35 AM
    • Activision's (ATVI +6.3%) Call of Duty: Advanced Warfare topped NPD's U.S. physical retail game sale rankings for the second month in a row in December. Destiny, which Activision hopes will be its third $1B+ franchise, was #9.
    • In a PR, Activision says Advanced Warfare was the "top-selling console game of 2014 globally," and that Destiny was the #2 2014 U.S. console game in terms of revenue. Skylanders was the top kids video game franchise globally (inc. toys/accessories sales), with a 30% sales edge over its biggest rival (presumably Disney's Infinity).
    • Electronic Arts' (EA - unchanged) Madden NFL 2015 rose a spot to #3, and FIFA 15 returned to the top-10 (at #10). Take-Two's (TTWO +1.8%) Grand Theft Auto V was at #2 for another month, continuing to get a lift from its next-gen console and PC launches. NBA 2K15 rose three spots to #5.
    • NPD estimates total U.S. physical retail game sales fell 2% Y/Y to $1.25B. Hardware sales, facing tougher comps (given next-gen consoles launched in Nov. 2013), fell 4% to $1.31B, with the Xbox One outselling the PS4. Next-gen consoles are performing 65% better than prior-gen consoles had over their first 14 months. GameStop (GME +3%), just three days removed from reporting better-than-expected holiday sales, is reacting favorably to the numbers.
    • Superdata Research estimates U.S. digital game spend rose 11% Y/Y in December to $1.2B. Mobile game sales (35% of 2014 sales) rose 17%, and digital console game sales (8% of 2014 sales) 10%.
    • EA reports on Jan. 27, Take-Two on Feb. 3, and Activision on Feb. 5.
    • Previously: NPD's November data
    • Update (2:15PM): EA is now up 1.8%, aided by a 0.8% increase for the Nasdaq. Activision is now up 9.2%, Take-Two 4.2%, and GameStop 4.5%.
    | Fri, Jan. 16, 10:35 AM | Comment!
  • Dec. 12, 2014, 10:39 AM
    • Though Activision's (ATVI -1.5%) Call of Duty: Advanced Warfare was (as expected) #1 in NPD's November U.S. physical retail game sale rankings, Call of Duty franchise sales were down 27% Y/Y and Activision's total sales down 22%.
    • That has led Piper to slash its Activision target by $3 to $24. "Strength in the Blizzard side of the business (WoW & HearthStone) should allow for an in-line Q4, but we are slightly lowering our estimates to now be in-line with company guidance."
    • Take-Two (TTWO +3.3%), meanwhile, has rallied towards its 52-week high after Grand Theft Auto V (recently become available on the Xbox One, PS4, and PCs) ranked #2. NBA 2K15 was #8, down one spot from October. Borderlands: The Pre-Sequel fell out of the top-10.
    • Electronic Arts' (EA +0.5%) Madden NFL 15 rose four spots to #4, but FIFA 15 fell out of the top-10. BofA/Merrill has hiked its targets (I, II) for both EA and Take-Two following NPD's numbers: It's optimistic EA can continue growing margins thanks to growing digital sales and cost controls, and argues Take-Two deserves a multiple similar to EA and Activision's.
    • NPD estimates total U.S. physical game sales fell 2% Y/Y in November to $1.09B, a much smaller drop than October's 27%. With next-gen consoles having launched a year ago, hardware sales fell an estimated 23% to $1.01B, with the Xbox One (1.2M sales) outselling the PS4 following a $50 early-November price cut.
    • Wedbush's Michael Pachter thinks game sales growth may have been positive after accounting for downloads and the frequent bundling of games with consoles. Meanwhile, Superdata Research estimates total digital game spend rose 23% Y/Y during the Thanksgiving period.
    | Dec. 12, 2014, 10:39 AM | 3 Comments
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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.