Summary
Take-Two Interactive Software, Inc. (TTWO) reported its financial results for the second quarter of fiscal year 2025, ending September 30, 2024. The company saw a modest increase in net revenue, driven primarily by its mobile segment and strong performance from titles like "Match Factory!" and "Toon Blast." Gross profit saw a significant improvement year-over-year, largely due to lower amortization of intangible assets and reduced internal royalties, which more than offset higher digital platform fees. While the company continues to invest heavily in research and development and faces increased selling and marketing expenses, the overall operating expenses, excluding goodwill impairment charges from the prior year, saw a manageable increase. The company also reported progress in its cost reduction program, impacting business reorganization expenses. Despite ongoing investments and some operational cost increases, Take-Two's focus on recurrent consumer spending, digital distribution, and strategic acquisitions like Gearbox positions it for future growth. The upcoming release of "Grand Theft Auto VI" in Fall 2025 remains a key event to watch.
Financial Highlights
53 data points| Revenue | $1.35B |
| Cost of Revenue | $625.20M |
| Gross Profit | $727.90M |
| Operating Expenses | $1.03B |
| Operating Income | -$297.20M |
| Interest Expense | $40.80M |
| Net Income | -$365.50M |
| EPS (Basic) | $-2.08 |
| EPS (Diluted) | $-2.08 |
| Shares Outstanding (Basic) | 175.40M |
Key Highlights
- 1Net revenue increased by 4.1% to $1.35 billion for the three months ended September 30, 2024, compared to the prior year period, driven by strong performance in the mobile segment and new titles.
- 2Gross profit margin improved significantly to 53.8% from 32.0% year-over-year, mainly due to lower amortization of intangible assets and reduced internal royalties.
- 3Operating expenses increased by 6.9% to $1.03 billion, with higher selling and marketing, and general and administrative costs partially offset by the absence of goodwill impairment charges from the prior year.
- 4The company acquired The Gearbox Entertainment Company, Inc. in June 2024 for approximately $435 million, adding to its intellectual property and creative talent.
- 5Net loss for the quarter was $365.5 million, an improvement from a net loss of $543.6 million in the same period last year.
- 6As of September 30, 2024, the company had $1.32 billion in cash, cash equivalents, and restricted cash and cash equivalents, showing an increase from the prior fiscal year-end.
- 7The company reiterated its plan to release "Grand Theft Auto VI" in the fall of calendar year 2025.