TAKE TWO INTERACTIVE SOFTWARE INC Annual Report, Year Ended Mar 31, 2019

Take-Two Interactive Software, Inc. (TTWO) reported a strong performance for the fiscal year ended March 31, 2019, driven by significant revenue growth, largely attributed to the successful launch of 'Red Dead Redemption 2' and the adoption of new revenue recognition standards (ASC 606). Net revenue increased by 48.8% to $2.67 billion, with net income more than doubling to $333.8 million. The company's strategy of focusing on high-quality, internally-developed franchises like Grand Theft Auto and Red Dead Redemption continues to pay off, complemented by strong performance from the NBA 2K series. The shift towards digital distribution and recurrent consumer spending, which now accounts for 40.1% of net revenue, highlights the evolving industry landscape and Take-Two's successful adaptation. Despite a substantial increase in selling and marketing expenses, primarily due to launch-related activities for 'Red Dead Redemption 2', the company demonstrated operational leverage, with operating income growing significantly. The company also managed its balance sheet effectively, with a substantial increase in cash and cash equivalents, bolstered by strong operating cash flows.