Take-Two reduces losses as it delays Evolve to 2015
Take-Two Interactive today reported mild revenue growth and reduced losses for its most recent financial quarter, with a positive financial outlook for the full fiscal year.
As part of that forecast, the company announced a revised release schedule that sees Turtle Rock's Evolve delayed past this year's holiday season; the game was previously slated to go on sale in October, but is now expected to launch in February 2015.
Now let's talk numbers: For the fiscal quarter ending June 30, 2014, Take-Two Interactive reported Non-GAAP net revenue of $151.6 million, up roughly 5 percent year-over-year from $144.3 million. The company reported a net loss of $11.2 million, which is significantly smaller than the $47.1 million loss it reported in the same quarter a year prior.
The loss is to be expected in light of the fact that Take-Two launched no new titles in the quarter, but Take-Two CEO Strauss Zelnick took pains to state that the company's mild revenue growth and reduced losses were due to strong ongoing sales of Grand Theft Auto V and NBA 2K14, as well as growing sales of digital content in both games and enduring sales of Borderlands 2 digital content.
It's worth noting that Take-Two reported net revenue from sales of digitally-delivered content grew to $106.4 million in the quarter -- up roughly 43 percent year-over-year from $74.5 million -- as the industry continues to embrace digital distribution.
Looking ahead, the company expects to generate between $1.35 and $1.45 billion in revenue during the 2015 fiscal year. It also hopes to reap between 80 cents and $1.05 per share in profit. Rockstar Games is expected to contribute to that projected bottom line with the upcoming relaunch of Grand Theft Auto V on the PC, Xbox One and PlayStation 4 consoles.
Take-Two is betting on significant revenue from the slate of 2K titles that are coming in fiscal 2015, including NBA 2K15, Borderlands: The Pre-Sequel, Sid Meier's Civilization: Beyond Earth and Evolve -- which will still launch in the current fiscal year, despite its delay.