Summary
Take-Two Interactive Software, Inc. (TTWO) reported its financial results for the third quarter and first nine months of fiscal year 2015, ending December 31, 2014. The company experienced a significant year-over-year decline in net revenue for both the quarter and the nine-month period, largely attributable to the strong performance of Grand Theft Auto V in the prior year. While console revenue decreased as a percentage of total revenue, digital online revenue showed substantial growth. Financially, the company reported a net loss for the nine-month period, a stark contrast to the significant net income generated in the same period last year. This shift is primarily driven by lower revenue and a substantial increase in operating expenses, particularly in selling and marketing and general and administrative costs. Despite the revenue decline and net loss, the company maintained a solid cash position, with over $897 million in cash and cash equivalents and short-term investments at the end of the period.
Financial Highlights
50 data points| Revenue | $531.15M |
| Cost of Revenue | $278.01M |
| Gross Profit | $253.13M |
| Operating Expenses | $187.52M |
| Operating Income | $65.61M |
| Net Income | $40.09M |
| EPS (Basic) | $0.46 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 87.48M |
| Shares Outstanding (Diluted) | 107.11M |
Key Highlights
- 1Net revenue for the three months ended December 31, 2014, decreased by 71.5% year-over-year to $531.1 million, primarily due to the comparison against the strong launch of Grand Theft Auto V in the prior year's quarter.
- 2For the nine months ended December 31, 2014, net revenue declined by 63.7% to $782.8 million, also significantly impacted by the prior year's Grand Theft Auto V performance.
- 3The company reported a net loss of $36.7 million for the nine months ended December 31, 2014, compared to a net income of $392.4 million in the prior year.
- 4Operating expenses increased by 36.0% for the quarter and 1.0% for the nine-month period, driven by higher selling and marketing, and general and administrative costs.
- 5Digital online revenue showed significant growth, increasing to 28.2% of total revenue for the quarter and 39.7% for the nine-month period, indicating a shift in distribution channels.
- 6Cash and cash equivalents and short-term investments remained strong at $897.5 million as of December 31, 2014, providing a healthy liquidity position.
- 7The company's share repurchase program remained authorized, although no shares were repurchased during the reported nine-month period.