Take Two Q2 FY3/2024 Financial Results (Jul - Sep 2023) | Net revenue down by 7% YoY, Net losses up by 111,5%; GTAV now at 190m

[MarcoP90]

https://ir.take2games.com/static-files/1da53a36-d601-415a-9b33-1d83e845240c

"Our strong second quarter results, including Net Bookings of $1.4 billion, underscore the strength of our portfolio of iconic, industry-leading intellectual properties. During the period, our teams released new offerings, delivered engaging post-launch content, and advanced further the development of our eagerly-anticipated pipeline," said Strauss Zelnick, Chairman and CEO of Take-Two.
"While we expect continued macroeconomic uncertainty, we believe that we are well positioned for the holiday season and are reiterating our fiscal 2024 Net Bookings guidance of $5.45 to $5.55 billion."
"Looking ahead, I am optimistic about our Company’s multi-year growth trajectory and our ability to deliver long-term value for our shareholders. Our development pipeline is robust and diverse, and we are getting closer to delivering the groundbreaking titles that our audiences throughout the world have been anticipating. With an unwavering commitment to being the most creative, the most innovative, and the most efficient entertainment company, I have great confidence that our offerings will surpass our players’ expectations and set new standards of creative excellence in our industry."

Second quarter FY3/2024

Financial Results

Financial and Operational Highlights

Total Net Bookings* decreased 4% to $1.44 billion, as compared to $1.50 billion during last year’s fiscal second quarter.
◦ Net Bookings from recurrent consumer spending** decreased 7% and accounted for 78% of total Net Bookings.
◦ The largest contributors to Net Bookings were NBA® 2K24 and NBA 2K23, Grand Theft Auto® Online and Grand Theft Auto V, our hyper-casual mobile portfolio, Empires & Puzzles™, Toon Blast™, Red Dead Redemption® 2 and Red Dead Online, Words With Friends™, Merge Dragons!™, and Zynga Poker™.

GAAP net revenue decreased 7% to $1.30 billion, as compared to $1.39 billion in last year’s fiscal second quarter.
◦ Recurrent consumer spending** decreased 9% and accounted for 77% of total GAAP net revenue.
◦ The largest contributors to GAAP net revenue were NBA 2K23 and NBA 2K24, Grand Theft Auto Online and Grand Theft Auto V, our hyper-casual mobile portfolio, Empires & Puzzles, Toon Blast, Red Dead Redemption 2 and Red Dead Online, Merge Dragons!, Words With Friends, and Zynga Poker.

• GAAP net loss was $543.6 million, or $3.20 per share, as compared to $257.0 million, or $1.54 per share, for the comparable period last year.

• Our GAAP results include impairment charges of (i) $219.7 million related to intangible assets and (ii) $165.4 million, related to goodwill, representing a partial impairment of one of our reporting units.

Outlook for the rest of the FY3/2024

Slides from the Earnings Presentation and the Investors Presentation

Earnings Presentation - https://ir.take2games.com/static-files/7d453c73-84f1-4977-bb98-3237e6017d48
Investors Presentation - https://ir.take2games.com/static-files/08f13511-2824-4d6e-9571-c857636f7ca6

 

[kazuyamishima]

GTAV is pulling about 20m every year for the last couple of years.

When GTAVI releases it could do 30m units on launch week.

 

[Bernd Lauert]

GTA 6 dev costs must be insane if they're losing that much money.

 

[allan-bh]

That's a big net loss for 3 months.

 

[Xevross]

GTAV is pulling about 20m every year for the last couple of years.

When GTAVI releases it could do 30m units on launch week.

Really depends on what platforms it launches on.

If it is PS5 and XBS only there's only so high it can go.

 

[ILikeFeet]

Really depends on what platforms it launches on.

If it is PS5 and XBS only there's only so high it can go.

If we're lucky, we'll see a PC release day one

 

[SoonyXboneUhh]

Really depends on what platforms it launches on.

If it is PS5 and XBS only there's only so high it can go.

If we're lucky, we'll see a PC release day one

I see that talk on internet forums a lot, but i refuse to believe Rockstar won't support their biggest GTA platform day one with the new release.

 

[Evilnemesis8]

GTA 6 dev costs must be insane if they're losing that much money.

Yeah, and the CEO has been repeating this for a while now :

Our development pipeline is robust and diverse, and we are getting closer to delivering the groundbreaking titles that our audiences throughout the world have been anticipating.

So I assume they're in the thick of it with multiple of the long gestating projects that are most likely hitting their peak dev headcounts.

If we're lucky, we'll see a PC release day one

Surely this time...

 

[Lite_Agent]

I see that talk on internet forums a lot, but i refuse to believe Rockstar won't support their biggest GTA platform day one with the new release.

Maybe GTA Online changed their mind, but if GTA VI is indeed day one on PC, that'll be the first time in ages Rockstar has a major release day and date on PC and consoles (excluding external ports/remasters like GTA Trilogy DE).

Closest is Max Payne 3 which came out within two weeks of console platforms.

Not saying it won't happen, but precedent isn't in favour of simultaneous release. But if there's one game to start a new trend, it's definitely GTA VI, so here's hoping.

Spoiler

Switch 2 Day one you cowards!

 

[ItWasMeantToBe19]

Take Two is currently making

GTA6
Civ7
Bioshock 4
A new GaaS FPS from 31st Union (Old Sledgehammer devs)
Mafia 4

They've also started two new studios (31st Union and the new Bioshock team) and had to hire hundreds of people for Hangar 13 after kind of destroying the studio before. So their expenses other than GTA6 are probably very high.

It's been weird because they have so many of these absolutely huge titles and haven't shown gameplay of any of them. GTA6 is in a month. Will be interesting to see when Bioshock 4 and Civ7 get gameplay footage. Bioshock 4's new studio was created in 2017 and the game was announced in 2019.

 

[salesguy]

Really depends on what platforms it launches on.

If it is PS5 and XBS only there's only so high it can go.

PS5/Xbox are probably ~70m now (PS5 now 46.6). With a LONG time before GTA 6 (however long you think, I would bet longer). should be 85+ after holiday 23. TECHNICALLY it's not that much constraint (even if it might be in reality)

Anyways I hope they show gameplay in GTA6 trailer. If so, I am expecting PHOTOREALISM. No game has this development money...

 

[Evilnemesis8]

Take Two is currently making

GTA6
Civ7
Bioshock 4
A new GaaS FPS from 31st Union (Old Sledgehammer devs)
Mafia 4

It's been weird because they have so many of these absolutely huge titles and haven't shown gameplay of any of them. GTA6 is in a month. Will be interesting to see when Bioshock 4 and Civ7 get gameplay footage. Bioshock 4's new studio was created in 2017 and the game was announced in 2019.

Hey don't forget the upcoming megahit JUDAS by the maestro Ken Levine.

Spoiler

PS5/Xbox are probably ~70m now (PS5 now 46.6). With a LONG time before GTA 6 (however long you think, I would bet longer). should be 85+ after holiday 23. TECHNICALLY it's not that much constraint (even if it might be in reality)

Anyways I hope they show gameplay in GTA6 trailer. If so, I am expecting PHOTOREALISM. No game has this development money...

It won't be lacking PS/Xbox consoles, but people want Day 1 PC for that stupid copies sold/revenue made in 24/72 hours. Like, with a PC version, the game EASILY could break into 2 Billion revenue within 24 hours.

 

[ItWasMeantToBe19]

Bioshock 4 is interesting because the series is obviously popular, but not THAT popular (yet) but I think Bioshock 4 is one of the most expensive games ever made.

-New studio established (always very expensive) in Novato (pretty expensive) and Quebec (pretty expensive)
-Studio started creation in 2017
-Game appears to be 2026 at the earliest as they're still hiring for ~40 positions for Bioshock 4

 

[Copilot]

"Groundbreaking titles". If anyone deserves trust, it's T2. Can't wait.

 

[Guarabyra]

RDR2 sold 57 million copies and they can't be arsed to do a next-gen upgrade.

 

[Evilnemesis8]

Bioshock 4 is interesting because the series is obviously popular, but not THAT popular (yet) but I think Bioshock 4 is one of the most expensive games ever made.

-New studio established (always very expensive) in Novato (pretty expensive) and Quebec (ridiculously expensive)

Québec is ridiculously expensive?

RDR2 sold 57 million copies and they can't be arsed to do a next-gen upgrade.

Yeah, if we look at how other games did with their nex-gen upgrades, that's money left on the table that's relatively easy to get.

 

[ItWasMeantToBe19]

I confused Quebec's cost of living for Toronto for a second.

 

[Evilnemesis8]

I confused Quebec's cost of living for Toronto for a second.

There's a reason there's a bunch of studios in Montréal and Québec City, not only are is it cheaper than many NA locations but the provincial government gives many incentives to come here.

Could you imagine a 4k headcount studio(Ubisoft Montréal)in Santa Monica/Seattle, etc...

 

[ItWasMeantToBe19]

My big question for Take Two is whether Zynga is actually making GTA Mobile because their job ads suggest... No?

Maybe after Star Wars Hunters releases...

Also, Star Wars Hunters seems to be headed to being a massive bomb? The YouTube metrics are horrible. But maybe that doesn't matter for mobile games.

If Zynga isn't making GTA Mobile, I'm a little confused by the purchase.

 

[Evilnemesis8]

TIL Star Wars Hunters was a thing.
Yes, I would imagine there's great impetus to make some sort of mobile GTA or a game based on any of the biggest IPs they own.

 

[ILikeFeet]

TIL Star Wars Hunters was a thing.
Yes, I would imagine there's great impetus to make some sort of mobile GTA or a game based on any of the biggest IPs they own.

Star Wars Hunters was the center of the Switch Pro stuff, even

 

[derby_440]

GTAV is pulling about 20m every year for the last couple of years.

When GTAVI releases it could do 30m units on launch week.

PS5/XB install base will be around 90 million in October 2024 so I doubt it can sell 30 million copies first week. That would be ridiculous even with PC release day 1 because GTA is much bigger on consoles.

20 million is good target for GTA6 launch week.

 

[Pancracio17]

Costs increasing and revenue decreasing sounds about right, they are ramping up for GTAVI.

Yeah, if we look at how other games did with their nex-gen upgrades, that's money left on the table that's relatively easy to get.

Rockstar leaves a ton of money on the table with different things they choose not to do. The GTA trilogy wouldve done a lot better without the disaster PR for example. They must have very, very strict ROI requirements to get anything greenlit. To a fault id say.

 

[Evilms]

Q3 2024

GTA V : 195 million (+5M)
RDR 2 : 61 million (+4M)
Borderlands 2 : 28 million (+1M)
Borderlands 3 : 19 million (+1M)


GTA series : 420 million (+5M)
RDR series : 86 million (+5M)
Borderlands series : 83 million (+2M)
BioShock series : 42 million (=)
Civilization series : 69 million (+1M)

 

[sheep]

GTA 6 dev costs must be insane if they're losing that much money.

Video game/software/etc. accounting is confusing. The money they're spending on GTA 6 (and other major titles) is not part of the current income statement/GAAP losses. Major game development costs are capitalized on the balance sheet and will only hit the income statement as the game is released.
They're losing money right now by GAAP accounting rules which may or may not match up to what's happening in the "real" world, but that's independent of GTA 6 development.

 

[MarcoP90]

A thread dedicated to the Q3 FY3/2024 results has been made; let's shift the discussion there

Take-Two Interactive | Q3 FY2024 (Oct - Dec 2023)

https://ir.take2games.com/static-files/f3fdf5c5-663b-4ac2-8924-d63dc410c60a GTA V : 195 million (+5M) RDR 2 : 61 million (+4M) Borderlands 2 : 28 million (+1M) Borderlands 3 : 19 million (+1M) GTA series : 420 million (+5M) RDR series : 86 million (+5M) Borderlands series : 83 million (+2M)...

www.installbaseforum.com