GTA Doubles Take-Two Profits, Sales In Q2
Publisher Take-Two has announced the results of its second quarter, with Grand Theft Auto IV predictably dominating sales, which more than doubled to $539.8 million, as profits rose to nearly $100 million following losses of $50 million the year prior.
Sales rose from $205.4 million in 2007, while profits totaled $98.2 million in the quarter ended April 30th. Take-Two notes that the quarterly results include $12.4 million in stock-based compensation expenses, nearly $4 million in legal fees related to EA's acquisition offer, and nearly a million dollars in reorganization costs.
Take-Two said GTAIV surpassed all-time entertainment records for day one and week one sales, selling 6 million units in its first week and bringing in more than $500 million. By the end of May, Take-Two said the game had shipped more than 11 million units, with 8.5 million sold.
For its first six months, Take-Two says sales have reached $780.3 million, up from $482.8 million the year prior, with profits of $60.2 million, compared to losses of $72.8 million in 2007.
Looking forward, Take-Two says it expects sales of $325-275 million in Q3 and $300-350 million in its fourth quarter, with sales reaching $1.4-$1.5 billion for the fiscal year.
Said CEO Ben Feder, “Based on the Company’s stronger than expected results, we have increased our financial guidance for fiscal 2008 and are confident in our ability to continue to perform for the balance of the year. Furthermore, Take-Two is extremely well positioned in an industry that is experiencing explosive growth. We believe that our exceptional creative talent, diverse range of hit products, and the proven global demand for our titles will be the drivers of increasing value over time.”