Summary
Take-Two Interactive Software, Inc. (TTWO) for the fiscal year ended March 31, 2020, demonstrated robust revenue growth and profitability, signaling a strong operational performance. The company reported net revenue of $3.09 billion, an increase of 15.8% year-over-year, driven by successful titles such as Borderlands 3, NBA 2K20, The Outer Worlds, and continued strength from Grand Theft Auto V and Red Dead Redemption 2. The shift towards digital online channels continues to be a significant driver of growth, representing 77.0% of net revenue, up from 63.0% in the prior year. This indicates a successful strategic focus on digital distribution and recurrent consumer spending, which also grew to 44.8% of net revenue. Financially, the company reported net income of $404.5 million, a notable increase from $333.8 million in the prior year, with diluted earnings per share of $3.54 compared to $2.90. The company maintained a strong liquidity position with $1.99 billion in cash, cash equivalents, and restricted cash and cash equivalents. Despite the economic uncertainties presented by the COVID-19 pandemic, Take-Two has shown resilience, even noting some positive impacts on consumer engagement. The company continues to invest in its development studios and intellectual property, positioning itself for future growth in the dynamic interactive entertainment market.
Financial Highlights
53 data points| Revenue | $3.09B |
| Cost of Revenue | $1.54B |
| Gross Profit | $1.55B |
| Operating Expenses | $1.12B |
| Operating Income | $425.27M |
| Net Income | $404.46M |
| EPS (Basic) | $3.58 |
| EPS (Diluted) | $3.54 |
| Shares Outstanding (Basic) | 113.10M |
| Shares Outstanding (Diluted) | 114.14M |
Key Highlights
- 1Net revenue increased by 15.8% to $3.09 billion, driven by strong performance across key franchises.
- 2Net income grew to $404.5 million, with diluted EPS reaching $3.54, demonstrating improved profitability.
- 3Digital online revenue continues to dominate, accounting for 77.0% of total net revenue, reflecting a successful shift in distribution strategy.
- 4Recurrent consumer spending increased to 44.8% of net revenue, highlighting the effectiveness of in-game purchases and add-on content.
- 5The company ended the fiscal year with a strong liquidity position, holding $1.99 billion in cash, cash equivalents, and restricted cash.
- 6Despite initial concerns about COVID-19, the company experienced some positive impacts on consumer engagement and showed resilience in its operations.
- 7Key product releases contributing to the strong performance included Borderlands 3, NBA 2K20, and The Outer Worlds, alongside continued success of Grand Theft Auto V and Red Dead Redemption 2.