Take-Two beats expectations despite weak release schedule

Take-Two has beaten its revenue and profit expectations and raised its full year projections, despite a thin release slate.

The firm generated $486.8 million during its third quarter, a sizeable drop compared with the $954 million the firm made the year before.

However, the previous year was bolstered by the launch of GTA V on Xbox One and PS4. Take-Two’s only ‘holiday’ releases of note was a new NBA and WWE title, which arrives ever year.

GTA is still doing the business for the firm, however. GTA Online was the driving force behind $213.6m in digital revenue. Money made via microtransactions and DLC grew 45 per cent during the quarter.

Over 60m copies of GTA V have now been shipped into stores, the company added.

As a result of the quarter, Take-Two now anticipates revenue of $1.48bn – $1.53bn for the full year.

During the holiday season, Take-Two enjoyed immense consumer demand for its recent releases and catalogue, enabling the company to deliver another quarter of strong revenue, Non-GAAP earnings and cash flow,” said Take-Two chief Strauss Zelnick.

These outstanding results were driven by robust sales of Grand Theft Auto V, NBA 2K16 and WWE 2K16, along with our highest-ever revenue from recurrent consumer spending.

As a result of our third quarter outperformance and solid forecast for the balance of the year, we are once again raising our financial outlook for fiscal 2016, which is poised to be another year of meaningful profits for Take-Two. Looking ahead, we have an extensive development pipeline that positions our Company for revenue growth and margin expansion over the long-term. We are excited about this Friday’s release of XCOM 2, which has received stellar early review scores, and anticipation already is building for the fiscal 2017 launches of Battleborn and Mafia III.”

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