Summary
Take-Two Interactive Software, Inc. (TTWO) reported its annual results for the fiscal year ended March 31, 2016, showcasing a significant revenue increase of 30.5% to $1.41 billion, largely driven by the enduring success of its Grand Theft Auto franchise, particularly Grand Theft Auto V and its online component. Despite the revenue growth, the company reported a net loss of $8.3 million, an improvement from the prior year's net loss of $279.5 million. This indicates a shift towards profitability, although the company is still navigating development costs and market dynamics. The company's strategy remains focused on developing and publishing high-quality, internally-owned franchises through its Rockstar Games and 2K labels. A key trend highlighted is the increasing importance of digital distribution and recurrent consumer spending, which now accounts for a substantial portion of revenue. International markets also continue to be a significant contributor, representing 47.4% of net revenue. Management acknowledges the inherent seasonality and reliance on 'hit' titles, with Grand Theft Auto alone contributing over 54% of revenue, underscoring both its strength and a potential area of risk.
Financial Highlights
53 data points| Revenue | $1.41B |
| Cost of Revenue | $813.87M |
| Gross Profit | $599.83M |
| Operating Expenses | $610.65M |
| Operating Income | -$10.83M |
| Net Income | -$8.30M |
| EPS (Basic) | $-0.10 |
| EPS (Diluted) | $-0.10 |
| Shares Outstanding (Basic) | 83.42M |
| Shares Outstanding (Diluted) | 83.42M |
Key Highlights
- 1Revenue increased by 30.5% to $1.41 billion for the fiscal year ended March 31, 2016, driven by strong performance from the Grand Theft Auto franchise.
- 2Reported a net loss of $8.3 million, a significant improvement from a net loss of $279.5 million in the prior fiscal year.
- 3Digital online channels accounted for 49.3% of net revenue, indicating a growing shift towards digital distribution and recurrent consumer spending.
- 4The Grand Theft Auto franchise remains a critical revenue driver, contributing 54.5% of total net revenue for the fiscal year.
- 5International sales represented 47.4% of total net revenue, highlighting the company's global market presence.
- 6The company continues to invest in its core franchises like Grand Theft Auto and NBA 2K, and has a pipeline of upcoming titles including Mafia III and Civilization VI.
- 7Significant investments in software development and licenses are ongoing, reflecting a commitment to future product pipelines.