Summary
Take-Two Interactive Software, Inc. (TTWO) filed its 2013 Form 10-K on May 14, 2013, for the fiscal year ended March 31, 2013. The company reported an increase in net revenue to $1.21 billion, a significant rise of 47.1% year-over-year, largely driven by strong performance from titles such as Borderlands 2, NBA 2K13, and BioShock Infinite. Despite the revenue growth, Take-Two reported a net loss of $29.5 million for the fiscal year, a notable improvement from the $108.8 million net loss in the previous year. The company highlighted its strong franchise portfolio, including Grand Theft Auto and titles under its 2K label, and emphasized its strategy of focusing on developing and publishing high-quality, internally-owned intellectual property. Key financial trends include a growing contribution from digital online channels, which represented 21.1% of net revenue, up from 12.9% in the prior year. The company also mentioned the upcoming launch of next-generation consoles and its preparedness for this transition. While facing competition and market risks, Take-Two is actively investing in emerging platforms like mobile and online gaming. The company's financial position remains solid with $402.5 million in cash and cash equivalents, and it has a revolving credit facility providing additional liquidity.
Financial Highlights
48 data points| Revenue | $1.21B |
| Cost of Revenue | $715.84M |
| Gross Profit | $498.65M |
| Operating Expenses | $493.41M |
| Operating Income | $5.24M |
| Net Income | -$29.49M |
| EPS (Basic) | $-0.34 |
| EPS (Diluted) | $-0.34 |
| Shares Outstanding (Basic) | 85.58M |
| Shares Outstanding (Diluted) | 85.58M |
Key Highlights
- 1Net revenue increased significantly by 47.1% to $1.21 billion in fiscal year 2013, driven by strong performance of new titles like Borderlands 2 and BioShock Infinite.
- 2Net loss improved to $29.5 million, a substantial reduction from the $108.8 million net loss reported in fiscal year 2012.
- 3Digital online channels accounted for 21.1% of net revenue, demonstrating growth in digital distribution compared to 12.9% in the previous year.
- 4The company's core franchises, including Grand Theft Auto (generating 11.3% of net revenue) and titles from the 2K label (like NBA 2K and Borderlands), continue to be major revenue drivers.
- 5Take-Two Interactive is positioned for the upcoming console generation transition, with titles like Grand Theft Auto V slated for release on current-gen platforms.
- 6The company maintains a strong liquidity position with $402.5 million in cash and cash equivalents as of March 31, 2013.
- 7A significant portion of revenue, 52.5%, is derived from the top five customers, highlighting a concentration risk.