Take-Two Reports Higher Sales
November 02 2016 - 5:30PM
Dow Jones News
Take-Two Interactive Software Inc. on Wednesday reported higher
sales in its fiscal second quarter but said revenue deferrals and
other factors drove profit and its full-year outlook lower.
The publisher of "Grand Theft Auto" and other popular videogames
said revenue rose 21% to $420.2 million in the quarter ended Sept.
30 as gamers spent more on virtual currency and other add-on
content, particularly for the latest installment of its " NBA 2K"
franchise. The basketball game had a record first-week sales for
the series when it came out last month, the company said. To date,
it has sold-in more than 4.5 million copies to retailers.
Net income, however, fell 33% to $36.4 million, or 39 cents a
share. Take-Two blamed the drop on deferrals of revenue under U.S.
accounting rules, higher royalties for developers at its studios
and increased marketing expenses.
Take-Two cited the same factors for lowering its profit forecast
for fiscal 2017 to between $1.80 and $2.09 a share from $1.98 to
$2.29. The company left its full-year revenue outlook of $1.75
billion to $1.85 billion unchanged.
Under U.S. generally accepted accounting principles, companies
defer some revenue from online-enabled games for as long as they
expect to provide services for those games, a period typically
lasting six to nine months. Take-Two said net revenue deferrals
rose to $59.3 million from $18 million a year ago.
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
November 02, 2016 17:15 ET (21:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
TakeTwo Interactive Soft... (NASDAQ:TTWO)
Historical Stock Chart
From Mar 2024 to Apr 2024
TakeTwo Interactive Soft... (NASDAQ:TTWO)
Historical Stock Chart
From Apr 2023 to Apr 2024