Grand Theft Auto
publisher Take-Two on Monday reported a swing to a loss and a decrease in revenues for the first fiscal quarter ended June 30.
Those losses occurred even as Take-Two released high-profile titles L.A. Noire
and Duke Nukem Forever
during the period.
Net revenue for the quarter was $334.4 million, down from $375.4 million for the same quarter a year prior, and below Wall Street estimates of $351.2 million, according to Reuters
. GAAP losses for the period were $8.6 million, down from profits of $27.4 million year-on-year.
Take-Two expects second quarter revenue of $70 million to $85 million, which is well below the $195 million in revenue Wall Street expected for the quarter, Reuters reported.
: Take-Two shares were down 9 percent to $11.07 in regular trading and an additional 4 percent in after-hours trading, even worse figures than the overall market on a poor day which saw NASDAQ down 7 percent.]
The company said digitally-delivered content accounted for $24.6 million of net revenue, up 49 percent year-over-year, thanks to properties like Red Dead Redemption, Borderlands, Grand Theft Auto, Duke Nukem Forever, Civilization
and L.A. Noire
Take-Two previously announced that interactive crime drama L.A. Noire
had shipped 4 million units
. The game is also slated for a PC release this fall.
While GAAP figures showed losses, Take-Two CEO Strauss Zelnick opted to focus more on non-GAAP figures, which exclude one-off expenses such as losses from discontinued operations or legal fees.
Non-GAAP profit was $2 million for the period, down from $40.9 million a year prior. Zelnick said in a statement, "During the first quarter, we delivered revenue and non-GAAP profits that were in line with our expectations."
"Our results benefited from the launch of Rockstar's groundbreaking and critically acclaimed title L.A. Noire
, the release of Duke Nukem Forever
, continued strong sales of NBA 2K11
and Red Dead Redemption
, and growth in digitally delivered content. Given our solid performance year-to-date and robust pipeline of upcoming new releases, we are well positioned to be profitable on a non-GAAP basis in fiscal year 2012."
The publisher expects to report $1 to $1.1 billion in sales for the current fiscal year ending March 31, 2012, comparable to the previous fiscal year's $1.16 billion in sales. Take-Two expects GAAP earnings per share to to be 10 to 35 cents.
Zelnick added, "Looking ahead to fiscal year 2013, we have already announced three exciting new releases: BioShock Infinite, Spec Ops: The Line
, and Borderlands 2
, and we have a very strong pipeline of yet-to-be announced titles in development."
"As a result, we continue to expect to achieve substantial revenue and earnings growth, including non-GAAP net income in excess of $2 per share."