Take-Two Interactive raises financial outlook due to Red Dead Redemption II
Take-Two Interactive released its financials for the second quarter ended September 30, reporting an 11 percent increase in revenue to $492.7 million thanks to successful sales of NBA 2K19.
Recurrent consumer spending (purchases of DLC, in-game currency and micro transactions) grew 12 percent and accounted for 49 percent of total net revenue.
Net income increased to $25.4 million, or $0.22 per diluted share, as compared to a net loss of $2.7 million, or $0.03 per diluted share, for the comparable period last year.
Grand Theft Auto V is still selling well, and Grand Theft Auto Online is exceeding company expectations even ahead of Red Dead Redemption 2's release.
NBA 2K19 sales increased 10 percent compared to last year's release, driven primarily by growth in recurrent consumer spending. Digital downloads of the game also increased significantly.
Digitally-delivered revenue grew 18 percent to $358.4 million and made up for 73 percent of the total revenue, with the company noting that the split between digital download sales and physical sales are moving faster than initially anticipated.
Because these financials are for the three months ended September 30, it doesn't include the launch of Red Dead Redemption 2, which generated $725 million during its first three days on shelves.
However, due to better-than-expected sales of Red Dead Redemption 2, Take-Two has increased its outlook for the full financial year, expecting to hit between $2.55 billion to $2.65 billion in revenue with income of around $202 to $232 million.