Take-Two Interactive Software Inc. reported a narrower loss in
its fiscal first quarter, but said it would delay the introduction
of the high-profile "Evolve" videogame for the latest consoles.
The New York-based company, which reaffirmed its financial
guidance for the year, said it was able to surpass its financial
projections due to stronger-than-expected sales of existing content
delivered digitally.
Take-Two did not launch any major titles in April-June,
traditionally considered low season for the industry as most game
makers move release dates closer to the busy holiday season in the
end of the year.
"It's gratifying to beat our quarter without having any new
frontline releases," said Strauss Zelnick, Take-Two's chairman and
chief executive.
Take-Two plans to roll out several new games in the fall,
including "Sid Meier's Civilization: Beyond Earth," a new strategy
game in the popular series.
One long-awaited title expected for the fall line-up is missing,
however. "Evolve," a shooting game for the next-generation game
consoles, Microsoft Corp.'s Xbox One and Sony Corp.'s PlayStation
4, is now slated to arrive in February 2015.
"We'll have a bit more development time which we think the title
deserves," said Zelnick.
Take-Two is offering only one game for next-generation consoles
at the moment, "NBA 2K14." The game will be replaced by "NBA 2K15"
in October 2014.
"WWE 2K15," another sports title that will be available for the
new consoles, is slated to arrive that month too, followed by the
company's biggest revenue driver, the action game "Grand Theft Auto
V." Its version for PC, PlayStation 4 and Xbox One is coming in the
fall.
The company has also announced its new action game for
next-generation consoles, "Battleborn," that's slated to release in
the next fiscal year.
Take-Two reported a loss for the fiscal first quarter ended June
30 of $35.4 million, or 45 cents a share, compared with the
year-earlier loss of $61.9 million, or 71 cents a share. Revenue
slid 12% to $125.4 million.
The company stresses financial results that exclude deferred
revenue and several other items, such as stock-based compensation
and reorganization expenses.
With those items excluded, Take-Two's loss narrowed to 14 cents
a share on $151.6 million in sales. Analysts had projected a loss
on that basis of 26 cents a share on revenue of $135 million,
according to Thomson Reuters.
Take-Two reaffirmed its guidance for the year with those items
excluded, at per-share earnings of 80 cents to $1.05 on sales of
$1.35 billion to $1.45 billion.
Write to Nick Shchetko at mikalai.shchatsko@wsj.com
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