Summary
Take-Two Interactive Software, Inc. (TTWO) reported net revenue of $825.8 million for the fiscal year ended March 31, 2012, a decrease of 27.4% from the previous year, and a net loss of $108.8 million, a reversal from the $48.5 million net income in fiscal year 2011. This decline was primarily attributed to lower sales from prior year releases like 'Red Dead Redemption' and 'Mafia II', partially offset by contributions from newer titles such as 'L.A. Noire' and 'Duke Nukem Forever'. The company's strong brands, Rockstar Games and 2K, continue to drive development across various platforms. Despite the net loss, Take-Two maintained a solid cash position, ending the year with $420.3 million in cash and cash equivalents, bolstered by a significant convertible note issuance in November 2011. The company is strategically focusing on developing high-quality, internally-owned intellectual property and leveraging emerging technologies like digital distribution and mobile gaming. However, significant risks remain, including dependence on "hit" titles, intense competition, product development delays, and economic uncertainties impacting consumer spending. The company's future success hinges on its ability to consistently deliver commercially successful "hit" titles and adapt to the evolving gaming landscape, particularly with upcoming major releases like 'Grand Theft Auto V'.
Financial Highlights
51 data points| Revenue | $825.82M |
| Cost of Revenue | $528.86M |
| Gross Profit | $296.97M |
| Operating Expenses | $381.23M |
| Operating Income | -$84.27M |
| Net Income | -$108.82M |
| EPS (Basic) | $-1.31 |
| EPS (Diluted) | $-1.31 |
| Shares Outstanding (Basic) | 83.36M |
| Shares Outstanding (Diluted) | 83.36M |
Key Highlights
- 1Net revenue for the fiscal year ended March 31, 2012, decreased by 27.4% to $825.8 million, reflecting a challenging sales period compared to the prior year.
- 2The company reported a net loss of $108.8 million for fiscal year 2012, a significant reversal from a net income of $48.5 million in fiscal year 2011.
- 3Despite the net loss, cash and cash equivalents increased to $420.3 million as of March 31, 2012, supported by a $250 million issuance of 1.75% Convertible Notes in November 2011.
- 4Key franchises like Grand Theft Auto and NBA 2K continue to be significant revenue contributors, with 'Grand Theft Auto' products alone accounting for 13.8% of net revenue.
- 5The company is actively investing in digital distribution, mobile gaming, and online content, recognizing these as important growth opportunities.
- 6Significant risks highlighted include heavy reliance on "hit" titles, intense industry competition, product development challenges, and potential economic downturns affecting consumer discretionary spending.