Summary
Take-Two Interactive Software, Inc. (TTWO) filed its 10-K for the fiscal year ended March 31, 2015, reporting significant revenue decline primarily due to the absence of a major title release like Grand Theft Auto V in the prior year, which heavily influenced fiscal year 2014 results. The company experienced a net loss for fiscal year 2015 compared to a substantial net income in fiscal year 2014. Despite the revenue drop, digital distribution channels showed strong growth, now representing 42% of net revenue. The company continues to invest in its core franchises like Grand Theft Auto and NBA 2K, and is expanding its presence in emerging markets and digital content, including add-on content and microtransactions, which are showing positive trends. Key risks highlighted include dependence on "hit" titles, particularly Grand Theft Auto, product development risks, competition, and reliance on a limited number of major customers. The company's financial position remains solid with over $911 million in cash and cash equivalents at year-end. Despite the reported net loss for the fiscal year, the company is focused on strategic product development and leveraging digital channels for future growth.
Financial Highlights
53 data points| Revenue | $1.08B |
| Cost of Revenue | $794.87M |
| Gross Profit | $288.07M |
| Operating Expenses | $546.53M |
| Operating Income | -$258.46M |
| Net Income | -$279.47M |
| EPS (Basic) | $-3.48 |
| EPS (Diluted) | $-3.48 |
| Shares Outstanding (Basic) | 80.37M |
| Shares Outstanding (Diluted) | 80.37M |
Key Highlights
- 1Net revenue decreased by 53.9% to $1.08 billion in fiscal year 2015, largely due to the absence of a major release like Grand Theft Auto V in the preceding year which boosted FY2014 results.
- 2The company reported a net loss of $279.5 million for fiscal year 2015, a significant shift from a net income of $361.6 million in fiscal year 2014.
- 3Digital online channels saw substantial growth, accounting for 42.0% of net revenue in fiscal year 2015, up from 15.8% in fiscal year 2014, indicating a strategic shift towards digital distribution.
- 4The Grand Theft Auto franchise, while seeing a decline from the prior year's massive contribution, still represented 28.0% of net revenue in fiscal year 2015, highlighting its continued importance.
- 5The company maintained a strong liquidity position with $911.1 million in cash and cash equivalents as of March 31, 2015.
- 6Key franchises such as NBA 2K and WWE 2K continue to be significant revenue contributors, alongside growing contributions from titles like Borderlands and Evolve.
- 7The company faces significant risks, including over-reliance on a few "hit" titles, intense competition, product development risks, and dependence on a limited number of major retail customers.