01—Abstract
Summary
Summary of the 10-K filed May 14, 2013. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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%b 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 millionc in cash and cash equivalents, and it has a revolving credit facility providing additional liquidity.
02—Key points
Key Highlights
- Net 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.
- Net loss improved to $29.5 million, a substantial reduction from the $108.8 million net loss reported in fiscal year 2012.
- Digital online channels accounted for 21.1% of net revenue, demonstrating growth in digital distribution compared to 12.9% in the previous year.
- The 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.
- Take-Two Interactive is positioned for the upcoming console generation transition, with titles like Grand Theft Auto V slated for release on current-gen platforms.
- The company maintains a strong liquidity position with $402.5 million in cash and cash equivalents as of March 31, 2013.
- A significant portion of revenue, 52.5%, is derived from the top five customers, highlighting a concentration risk.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2013, Take Two Interactive Software Inc lost $0.02.
- Revenue$1.21B100.0%
- Cost of revenue−$715.8M58.9%
- Gross profit$498.6M41.1%
- Operating costs−$493.4M40.6%
- Operating income$5.2M0.4%
- Interest, other & tax−$34.7M2.9%
- Net income−$29.5M2.4%
Where FY2013 revenue went
$1.21B- Cost of revenue: $715.8M, 59% of revenue
- Operating costs: $493.4M, 41% of revenue
- Operating income: $5.2M, 0.4% of revenue
Kept 0.4% as operating incomeOperating income $5.2M · 0.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed May 14, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $1.21B$825.82M | +47.1% |
| Cost of Revenue | $715.84M$528.86M | +35.4% |
| Gross Profit | $498.65M$296.97M | +67.9% |
| Operating Expenses | $493.41M$381.23M | +29.4% |
| Operating Income | $5.24M-$84.27M | +106.2% |
| Net Income | -$29.49M-$108.82M | +72.9% |
| EPS (Basic) | $-0.34$-1.31 | +74.0% |
| EPS (Diluted) | $-0.34$-1.31 | +74.0% |
| Shares Outstanding (Basic) | 85.58M83.36M | +2.7% |
| Shares Outstanding (Diluted) | 85.58M83.36M | +2.7% |
05—Questions
Frequently Asked Questions
What was Take-Two Interactive's financial performance for the fiscal year ended March 31, 2013?
For the fiscal year ended March 31, 2013, Take-Two Interactive reported a net revenue of $1.21 billion, a 47.1% increase year-over-year. The company reduced its net loss to $29.5 million, a significant improvement from the $108.8 million net loss in the prior fiscal year.
Which key franchises contributed most to Take-Two's revenue?
Key revenue drivers included titles from the Borderlands, NBA 2K, Grand Theft Auto, BioShock, and Max Payne franchises. Grand Theft Auto products alone accounted for approximately 11.3% of the company's net revenue for the fiscal year.
How is digital distribution performing for Take-Two Interactive?
Digital online channels are showing strong growth, representing 21.1% of the company's net revenue for fiscal year 2013, up from 12.9% in the previous year. This indicates a successful shift towards digital sales and downloadable content.
What are the major risks highlighted by Take-Two Interactive in their 2013 10-K filing?
Key risks include a heavy reliance on 'hit' titles like Grand Theft Auto, product development risks leading to delays and cost overruns, dependence on current generation hardware platforms, intense competition, and risks associated with a limited number of major customers accounting for a significant portion of sales.
06—Continue