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Take-Two Interactive has closed out its second quarter with a 74 percent year-over-year jump in GAAP net revenue, an increase the company attributes to strong performance from several of its games, including the likes of Borderlands 3, NBA 2K20, and Grand Theft Auto Online, to name a few.
That increase left GAAP net revenue at $857.9 million for the quarter, up from $492.7 million during the same quarter last year. Recurrent consumer spending alone, which includes the sale of in-game currency, add-on content, and in-game purchases, was responsible for 37 percent of that revenue, and increased 32 percent year-over-year.
GAAP net revenue from digital sources increased 72 percent year-over-year, landing at $615.8 million for the quarter. Likewise, 72 percent of overall GAAP net revenue came from digital sources this quarter.
Games like NBA 2K20, NBA 2K19, Borderlands 3, Grand Theft Auto Online, Grand Theft Auto V, Red Dead Redemption 2, Red Dead Online, Social Point, WWE 2K19, and WWE SuperCard are all credited as the largest contributors to that increase.
GAAP net income was also up year-over-year, coming in at $71.8 million for the quarter versus $25.4 million the year prior.
Following this quarter’s results, Take-Two Interactive has raised its forecasts for fiscal 2020 as a whole. The third quarter, which began on October 1, 2019, already includes the launches of The Outer Worlds and Red Dead Redemption 2 on PC, and CEO Strauss Zelnick notes in a press release that a handful of Google Stadia titles and the console release of Sid Meier’s Civilization VI loom on the holiday horizon as well.
“Looking ahead, Take-Two has the strongest development pipeline in its history, including sequels from our biggest franchises as well as exciting new IP,” says Zelnick. “We are actively investing in emerging markets, platforms and business models, and are exceedingly well positioned to capitalize on the positive trends in our industry and to generate growth and margin expansion over the long-term.”
For the fiscal year ending March 31, 2020, Take Two Interactive now expects GAAP net revenue to range from $2.93 to $3.03 billion, and GAAP net income from $388 to $416 million. For net revenue, that’s up from the previously expected range of $2.83 to $2.93 billion, though net income projections are now lowered from the previously expected $425 to $454 million range.