Summary
Take-Two Interactive Software, Inc. (TTWO) reported a significant turnaround in its financial performance for the nine months ended December 31, 2010, compared to the same period in the prior year. The company transitioned from a substantial net loss of $113.2 million in the nine months ended December 31, 2009, to a net income of $70.5 million for the corresponding period in 2010. This improvement was driven by a strong increase in net revenue, up 80.2% to $954.6 million, largely attributed to successful game releases such as 'Red Dead Redemption,' 'Mafia II,' and 'NBA 2K11.' Operationally, the company has divested its distribution business, allowing for a more focused strategy on its core publishing operations. Despite a decrease in revenue for the three months ended December 31, 2010, compared to the prior year, the overall nine-month performance reflects substantial recovery and growth. The company's balance sheet shows a healthy increase in cash and cash equivalents, rising to $297.1 million as of December 31, 2010, indicating improved liquidity and financial stability.
Financial Highlights
50 data points| Revenue | $334.26M |
| Cost of Revenue | $188.65M |
| Gross Profit | $145.61M |
| R&D Expenses | $18.07M |
| Operating Expenses | $96.93M |
| Operating Income | $48.68M |
| Net Income | $40.86M |
| EPS (Basic) | $0.47 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 80.74M |
| Shares Outstanding (Diluted) | 93.68M |
Key Highlights
- 1For the nine months ended December 31, 2010, Take-Two reported a net income of $70.5 million, a significant improvement from a net loss of $113.2 million in the prior year's comparable period.
- 2Net revenue for the nine months ended December 31, 2010, surged by 80.2% to $954.6 million, primarily driven by successful game releases like 'Red Dead Redemption,' 'Mafia II,' and 'NBA 2K11'.
- 3Cash and cash equivalents increased substantially, reaching $297.1 million as of December 31, 2010, compared to $145.8 million at March 31, 2010, indicating enhanced liquidity.
- 4The company completed the sale of its 'Jack of all Games' distribution business in February 2010, allowing it to concentrate resources on its publishing operations.
- 5Gross profit margin improved to 40.4% for the nine months ended December 31, 2010, up from 35.0% in the prior year, reflecting better pricing mix and operational efficiencies.
- 6Selling and marketing expenses increased by 26.1% for the nine months, reflecting investments in key product launches such as 'Red Dead Redemption' and 'Mafia II'.
- 7General and administrative expenses decreased by 12.2% for the nine months, primarily due to reduced legal and settlement costs.