Take-Two reports better than expected Q3 results as GTA V tops 32.5m

Take-Two has smashed its predicted earnings and has raised its outlook as GTA V shipments surpass 32.5m.

The firm’s Q3 revenue (Non-GAAP) has reached $767.7m (470m) (GAAP revenue hit 1.86bn), with a net income of $578m.

The results are primarily down to the performance of GTA V and Grand Theft Auto Online, although the firm calls out strong sales of WWE 2K14 and NBA 2K14, too. NBA 2K14 was the fastest selling release in the franchise’ history to date, the publisher says.

As a result of the bumper Christmas, Take-Two has raised its guidance for fiscal year 2014, up from $2.35bn to $2.38bn.

Take-Two’s business continued to outperform expectations significantly during the fiscal third quarter,” commented Take-Two CEO and chairman Strauss Zelnick in a prepared statement.

Our results were driven by robust holidaydemand for Grand Theft Auto V, the franchise record-breaking launch of NBA 2K14, the successful release of WWE 2K14, and strong growth in digitally-delivered revenues led by Grand Theft Auto Online.

"Take-Two was the top video game publisher of 2013, according to the NPD Group, underscoring our positive momentum over the past year.

As a result of our third quarter performance, we have once again raised our revenue and earnings
outlook for fiscal 2014, which is poised to be a record year for Take-Two."

Zelnick still expects to make a profit for the next financial year and for every year in the ‘foreseeable future’. The company says it expects these results due to a strong pipeline of new IP and existing franchises, although much of that product is currently unannounced. Take-Two does plan to launch Evolve under its 2K label this Christmas for next-gen consoles, while rumours persist it is preparing new versions of GTA V for other platforms, including PC.

Despite the recent success, Take-Two’s shares have risen only slightly and the publisher has begun a share repurchasing programme worth $276.8m. This included the repurchase of 12.02m shares from the Ichan Group led by renowned American investor and businessman, Carl Icahn.

Take-Two was the No.1 boxed games publisher in the US last year and No.2 in the UK, although the figures do not factor in digital revenue.