Summary
Take-Two Interactive Software, Inc. (TTWO) filed its 10-K for the fiscal year ended March 31, 2011, showcasing a significant turnaround in financial performance. After a substantial net loss in the prior fiscal year, the company reported a net income of $48.5 million, with earnings per share of $0.56. This improvement was driven by a nearly 50% increase in net revenue to $1.14 billion, largely attributed to the success of new releases like 'Red Dead Redemption' and 'Mafia II', alongside continued strength in the 'NBA 2K' franchise. The company continues to focus on its core strategy of developing and publishing high-quality, proprietary titles through its renowned labels, Rockstar Games and 2K. The transition towards current-generation platforms (PS3, Xbox 360, Wii) is evident, with these platforms now comprising over 80% of revenue. Digital distribution and international expansion, particularly in Asia, remain key growth areas. Despite robust revenue growth and improved profitability, investors should note the company's continued reliance on 'hit' titles, the inherent risks in product development cycles, and the competitive landscape within the interactive entertainment industry.
Financial Highlights
52 data points| Revenue | $1.14B |
| Cost of Revenue | $689.38M |
| Gross Profit | $447.50M |
| R&D Expenses | $69.58M |
| Operating Expenses | $370.35M |
| Operating Income | $77.14M |
| Net Income | $48.46M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 80.51M |
| Shares Outstanding (Diluted) | 80.52M |
Key Highlights
- 1Achieved a net income of $48.5 million for the fiscal year ended March 31, 2011, a significant improvement from the prior year's net loss.
- 2Reported a 49.0% increase in net revenue to $1.14 billion, driven by successful new releases such as 'Red Dead Redemption' and 'Mafia II'.
- 3The company continues its strategic focus on developing and publishing high-quality, proprietary titles through its labels Rockstar Games and 2K.
- 4Revenue from current-generation platforms (PS3, Xbox 360, Wii) now accounts for approximately 83.9% of total net revenue, indicating a successful platform transition.
- 5Expanded international revenue to 39.2% of total net revenue, with continued focus on the Asia-Pacific markets.
- 6Maintained a strong liquidity position with $280.4 million in cash and cash equivalents at the end of the fiscal year.
- 7Despite improvements, the company's financial performance remains heavily reliant on the success of its 'hit' titles, particularly from the Grand Theft Auto franchise.