TAKE TWO INTERACTIVE SOFTWARE INC Quarterly Report for Q2 Ended Sep 30, 2020

Summary

Take-Two Interactive Software, Inc. (TTWO) reported its fiscal second-quarter and year-to-date results for the period ending September 30, 2020. The company demonstrated strong top-line growth for the first six months of the fiscal year, with net revenue increasing by 19.6% year-over-year to $1.67 billion, driven primarily by strong performance in recurrent consumer spending and digital distribution channels. The company also saw significant improvements in profitability, with net income rising to $187.8 million for the six-month period, up from $118.1 million in the prior year. Diluted earnings per share also saw a substantial increase. The acquisition of Playdots, Inc., a mobile game developer, on September 4, 2020, is expected to bolster the company's mobile offerings and expand its portfolio of intellectual property.

Key Highlights

• 1Net revenue for the six months ended September 30, 2020, increased by 19.6% to $1.67 billion, compared to $1.40 billion in the prior year.
• 2Recurrent consumer spending revenue, which includes virtual currency and in-game purchases, was a significant growth driver, increasing by 341.8 million for the six-month period.
• 3Digital online distribution channels accounted for 86.0% of net revenue for the six months ended September 30, 2020, highlighting the shift towards digital sales.
• 4Net income for the six months increased by 58.9% to $187.8 million, compared to $118.1 million in the prior year.
• 5Diluted earnings per share rose to $1.63 for the six months, a substantial increase from $1.04 in the prior year.
• 6The company completed the acquisition of Playdots, Inc. on September 4, 2020, for approximately $195.5 million, aiming to strengthen its mobile game portfolio.
• 7As of September 30, 2020, the company had $1.04 billion in short-term investments, providing significant financial flexibility.

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