NEW YORK--(BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has announced its financial results for the third quarter of fiscal year 2025, which ended on December 31, 2024, reporting net bookings of $1.37 billion. This reflects a 3% increase compared to $1.34 billion for the same quarter last year, and it falls within the company’s projected guidance range.
Chairman and CEO Strauss Zelnick commented on the results, stating, "We achieved solid results during the holiday season. Our Net Bookings of $1.37 billion were within our guidance range, as significant outperformance in NBA 2K helped to offset moderation experienced in several of our mobile franchises. At the same time, our operating results surpassed expectations, led by the upside from NBA 2K, as well as a shift in timing of expenses." This demonstrates the importance of their flagship franchises, particularly the NBA 2K series, which has consistently driven revenue growth.
According to the report, recurrent consumer spending also saw growth, increasing by 9%, accounting for 79% of total net bookings during the quarter. The primary contributors to this result were NBA 2K25, Grand Theft Auto Online, and the mobile titles such as Toon Blast and Match Factory. The strategy of recurrent spending highlights Take-Two’s focus on user engagement and monetization beyond initial game purchases.
Despite the positive growth in net bookings, the company reported a GAAP net loss of $125.2 million, or $0.71 per share, compared to $91.6 million, or $0.54 per share, for the same period last year. This increased loss signals some underlying challenges within the company's operational framework, and it raises questions about cost management as they prepare for future releases.
Looking forward, Take-Two reiterated its full-year guidance for net bookings, maintaining the range of $5.55 billion to $5.65 billion for fiscal 2025. This reassurance from the company reflects their confidence amid the operational losses. Zelnick highlighted the anticipated success of forthcoming game launches, stating, "Looking ahead, this calendar year is shaping up to be one of the strongest ever for Take-Two, as we plan to launch Sid Meier’s Civilization VII on February 11th, Mafia: The Old Country in the Summer, Grand Theft Auto VI in the Fall, and Borderlands 4." These major titles are set to provide substantial boosts to revenue, particularly Grand Theft Auto VI, which is anticipated to follow the successful template laid out by its predecessors.
The financial report from the quarter also included forecasts for the upcoming fiscal fourth quarter ending March 31, 2025. The company expects their operations to stabilize, balancing the strengths of NBA 2K with potential improvements in mobile performance. Adjusted projections suggest confidence in regaining or exceeding previous profit levels.
Among the newly released games since October 1, 2024, are NBA 2K25 Arcade Edition on Apple Arcade, a PC version of Red Dead Redemption, and Grand Theft Auto Online: Agents of Sabotage for multiple platforms. These releases showcase Take-Two's strategy to cater to diverse gaming platforms and audiences.
While engaging the growing mobile market remains challenging, with increasing user acquisition costs impacting profitability, Take-Two continues to invest judiciously in its development pipeline. The company remains optimistic about the operational success of Zynga’s new franchises, particularly as evidenced by the performance of the Match Factory.
“For Fiscal 2025, we are reiteraring our net bookings guidance range of $5.55 to $5.65 billion and our outlook for operating performance. Our projections for the fourth quarter balance strength in NBA 2K with continuation of current mobile trends,” Zelnick stated, reaffirming their focus on strategic growth and stability within the company's revenue-generative sectors.
The company is set to host a conference call later today to discuss these results, providing shareholders and the market with insights on performance and planning. These discussions are integral for stakeholder engagement and company transparency.
Finally, the general sentiment going forward remains cautiously optimistic. Take-Two expects to reinforce its leading position within the gaming industry through strategic product releases and thorough management of operating costs. With its expansive game lineup planned for the year, the company appears poised to potentially turn its financial outlook back to profitability.