Summary
Take-Two Interactive Software reported a significant turnaround in its financial performance for the three months ended September 30, 2015, compared to the same period last year. The company achieved a net income of $54.7 million, a substantial improvement from a net loss of $41.4 million in the prior year. This positive swing was primarily driven by a surge in net revenue, which more than doubled to $347 million, largely attributed to the continued success and deferred revenue recognition of "Grand Theft Auto V" and "Grand Theft Auto Online," as well as strong performance from the "NBA 2K" franchise. For the six-month period, the company narrowed its net loss to $12.3 million from $76.8 million in the prior year, with net revenue more than doubling to $622.3 million. The company's cash position saw a decrease to $711.7 million from $911.1 million, primarily due to investments in software development and share repurchases, though it maintained significant liquidity with available borrowing capacity under its credit agreement. The company also continued its share repurchase program, buying back shares during the quarter.
Financial Highlights
51 data points| Revenue | $346.97M |
| Cost of Revenue | $143.94M |
| Gross Profit | $203.03M |
| Operating Expenses | $136.60M |
| Operating Income | $66.43M |
| Net Income | $54.73M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 87.56M |
| Shares Outstanding (Diluted) | 114.02M |
Key Highlights
- 1Net income of $54.7 million for the three months ended September 30, 2015, a significant recovery from a net loss of $41.4 million in the prior year period.
- 2Net revenue for the three months ended September 30, 2015, surged to $347.0 million, a 174.8% increase year-over-year, driven by "Grand Theft Auto V" and "NBA 2K" franchises.
- 3For the six months ended September 30, 2015, the company reported a narrowed net loss of $12.3 million, down from a $76.8 million loss in the same period last year.
- 4Cash and cash equivalents decreased to $711.7 million as of September 30, 2015, from $911.1 million as of March 31, 2015, mainly due to investing activities and share repurchases.
- 5The company repurchased approximately 953,647 shares of common stock for $26.6 million during the three months ended September 30, 2015, as part of its ongoing share repurchase program.
- 6Console games represented 86.8% of net revenue for the quarter and 84.1% for the six-month period, highlighting the platform's dominance for the company.
- 7Digital online channels accounted for 57.3% of net revenue for the six-month period, with recurrent consumer spending (add-on content, microtransactions, online play) making up a significant portion of this revenue.