Take-Two Interactive Software program reported that its internet bookings hit $1.47 billion within the fiscal second quarter ended September 30, up 2% from $1.44 billion a 12 months in the past.
The bookings development was pushed by gross sales of the Grand Theft Auto and Borderlands franchises, and the corporate reiterated its out search for internet bookings for the 12 months ending March 31, 2025. On a non-GAAP foundation, Take-Two stated earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA, a key measure of profitability) was a lack of $75.5 million within the quarter.
All eyes are on Take-Two, as Rockstar Video games on schedule to publish Grand Theft Auto VI within the fall of subsequent 12 months, about 13 years after the debut of Grand Theft Auto V, which has now bought 208 million copies.
“I am pleased to report that we delivered strong second quarter results,” stated Strauss Zelnick, CEO of Take-Two, in a press release. “Our net bookings of $1.47 billion were at the top of our guidance range, driven by the continued success of the Grand Theft Auto and Borderlands franchises, and our operating results
surpassed our plans, largely due to a shift in the timing of marketing expenses within the year.”
Zelnick added, “Our execution has been consistent, and our teams continue to make great progress advancing our development pipeline. Accordingly, we are reiterating our fiscal year 2025 net bookings guidance range of $5.55 to $5.65 billion, and we are confident that we will achieve sequential increases and record levels of Net Bookings in fiscal years 2026 and 2027.”
And he stated, “As we look ahead, we believe that Take-Two remains exceedingly well-positioned for the long-term. Our vision is clear, our talent is unparalleled, and we have one of the strongest portfolios of owned intellectual property in our industry. With many exciting new titles coming in Fiscal 2026 – including Grand Theft Auto VI in the fall, Borderlands 4 and Mafia: The Old Country – we expect to create long-term value for our shareholders.”
Through the quarter, the corporate stated it bought the Non-public Division label, which focuses on third-party unique indie titles. But it surely didn’t identify the client.
The $1.47 billion in bookings had been on the high of the steering vary.
In different particulars, internet bookings from recurrent client spending grew 6% and accounted for 81% of complete internet bookings within the quarter. The most important contributors to internet bookings had been NBA 2K25 and NBA 2K24, Grand Theft Auto On-line and Grand Theft Auto V, and Purple Useless Redemption 2 and Purple Useless On-line.
Within the extra informal/cell video games, Take-Two stated the quarter benefited from gross sales for Toon Blast, the hyper-casual cell portfolio, and Zynga’s titles together with Match Manufacturing unit!, Empires & Puzzles, Phrases With Buddies and Toy Blast.
Recurrent client spending is generated from ongoing client engagement and consists of digital foreign money, add-on content material, in-game purchases and in-game promoting.
Web bookings is Take-Two’s operational metric and outlined as the web quantity of services and products bought digitally or sold-in bodily in the course of the interval, and consists of licensing charges, merchandise, in-game promoting, technique guides and writer incentives.
On a GAAP accounting foundation, internet income elevated 4% to $1.35 billion, as in comparison with $1.30 billion in final 12 months’s fiscal second quarter. Recurrent client spending elevated 8% and accounted for 80% of complete GAAP internet income.
On a GAAP foundation, the web loss was $365.5 million, or $2.08 per share, as in comparison with $543.6 million, or $3.20 per share, for the comparable interval final 12 months.
Outlook
For the third fiscal quarter ending December 31, the corporate expects internet bookings to be $1.35 billion to $1.4 billion, and non-GAAP EBITDA to be $78 million to $100 million.
For the GAAP fiscal 12 months ending March 31, 2025, Take-Two expects internet income to be $5.57 billion to $5.67 billion. The GAAP internet loss is anticipated to be $775 million to $839 million, whereas non-GAAP EBITDA is anticipated to be $282 million to $336 million.
The most important contributors to internet bookings are anticipated to be NBA 2K, the Grand Theft Auto collection, Toon Blast, our hyper-casual cell portfolio, Match Manufacturing unit, Empires & Puzzles, the Purple Useless Redemption collection, Sid Meier’s Civilization VII, and Phrases with Buddies.
The web bookings outlook is anticipated to be in a variety of $5.55 billion to $5.65 billion, which represents 5% development over FY24.
Take-Two now anticipate RCS to develop roughly 4%, representing 78% of Web Bookings. That is up barely from the prior forecast of three%, pushed by NBA 2K. The RCS forecast continues to imagine a excessive single digit improve for cell, pushed by Match Manufacturing unit and Toon Blast, partially offset by declines within the hyper-casual cell portfolio and Empires and Puzzles. NBA 2K is anticipated to develop low single digits, which is up from the prior forecast of flat, whereas Grand Theft Auto On-line continues to be anticipated to say no.
Take-Two mission the web bookings from labels to be roughly 51% Zynga, 32% 2K, and 17% Rockstar Video games. The corporate forecasts geographic internet bookings break up to be about 60% United States and 40% Worldwide. Non-GAAP Adjusted Unrestricted Working Money Circulate is anticipated to be an outflow of $150 million, which is unchanged from the prior forecast, and the corporate stays on observe to deploy roughly $140 million of capital expenditures, primarily for sport know-how and workplace buildouts.
The outlook assumes a continuation of the present financial backdrop.
Recreation data
Since July 1, Take-Two launched Zynga’s Recreation of Thrones Legends on cell and NBA 2K25 on the consoles and PC. Within the close to future, releases embrace Sid Meier’s Civilization VII on the console and PC on February 11, 2025. GTA VI doesn’t have a selected launch date aside from the autumn of calendar 2025.
2K will publish WWE 2K25 within the March 2025 quarter. Borderlands fall is coming within the 12 months ending March 31, 2026, as is 2K’s Mafia: The Outdated Nation. Zynga’s CSR Racing 3 will come out on cell at a while sooner or later, as will Ghost Story Video games’ Judas.
The slight improve in internet bookings was largely pushed by a modest improve in internet bookings, in addition to mixture of enterprise. Within the interval, 82% of console sport gross sales had been delivered digitally, up from 75% final 12 months. Catalog accounted for $366.1 million (48.7% of non-mobile internet bookings). Take-Two has 37 titles within the works by way of March 31, 2027.
Rockstar Video games
Gross sales of Grand Theft Auto V outperformed expectations and, up to now, the title has sold-in greater than 205 million models worldwide. Grand Theft Auto On-line additionally exceeded plans, pushed by sustained engagement with the Summer season content material pack Backside Greenback Bounties, and an array of updates.
Momentum additionally continued inside GTA+, as Rockstar grew its membership by 35% over final 12 months, and added the basic title, Bully, to the library of obtainable video games.
Purple Useless Redemption 2 posted one other good quarter. The title has sold-in greater than 67 million models to-date and, six years after its launch, nonetheless ranks within the high ten for unit gross sales globally, based on GSD. Rockstar Video games was happy to increase its viewers additional with the profitable launch of Purple Useless Redemption and Undead Nightmare for PC on October 29.
2K
On September 6, 2K and Visible Ideas launched NBA 2K25, which scored among the many highest rankings on new era consoles in latest franchise historical past.
The sport has 9,000 new ProPLAY animations that present elevated authenticity; an all-new dribble engine, representing the largest technological replace within the collection’ 26-year historical past; and a extra interactive and fascinating expertise in The Metropolis.
To-date, the title has sold-in almost 4.5 million models and achieved phenomenal RCS efficiency, the corporate stated. In comparison with NBA 2K24 for a similar interval final 12 months, NBA 2K25 delivered significant double-digit development in common income per person and 40% development in common video games per person.
2K’s catalog additionally outperformed, led by the favored Borderlands franchise. Now that Gearbox has formally joined the 2K and Take-Two household, Take-Two stated it’s desirous to capitalize on the various potential development alternatives for Borderlands, Tiny Tina’s Wonderlands, and different Gearbox titles.
Zynga
Zynga delivered one other quarter of stable outcomes. Match Manufacturing unit is scaling quickly and is on observe to develop into Zynga’s second largest title by the tip of this 12 months by way of projected annual internet bookings. The title grew roughly 16% over final quarter, pushed by its partaking gameplay, together with the latest Star Race daring beat, and our strategic investments in person acquisition.
Toon Blast is sustaining its incredible path of development, with Web Bookings rising greater than 50% over final 12 months, as our groups deploy extremely partaking new options, together with new single participant and crew based mostly occasions and social challenges.
The blended monetization efforts in hyper-casual are advancing effectively. Particularly, Screw Jam stays a high fifty sport within the U.S. Apple App Retailer. Nordeus launched the extremely anticipated 2025 version of the favored soccer supervisor sport, High Eleven. Backed by a month-long advertising marketing campaign, the discharge generated constructive sentiment across the neighborhood, which helped solidify the biggest in-app buy spending per lively person within the sport’s 14-year historical past.
Through the quarter, Zynga launched Recreation of Thrones: Legends, and Take-Two is worked up in regards to the label’s future cell launches, together with CSR 3 – Avenue Automobile Racing.
Non-public Division
Take-Two stated it made the strategic determination to promote the Non-public Division label (geared toward third-party indie sport publishing) to focus sources on rising its core and cell companies for the long-term. As a part of this transaction, the client bought the rights to considerably all of Non-public Division’s reside and unreleased titles.
Take-Two will proceed to help No Relaxation for the Depraved, which launched in early entry on PC in April.
The corporate stated it’s grateful for the contributions that the Non-public Division crew has made to its firm and is assured that Non-public Division will proceed to realize success in its new house.
As for the variety of workers, Take-Two closed the September 30 quarter with 13,077 folks, together with 10,273 in-house improvement studio employees. These numbers had been up, respectively,by 110 jobs and 125 jobs. About 22% of employees had been in low-cost places (India, China, Turkey, Serbia, Chile, and Hungary).
Strauss Zelnick interview
I requested if the U.S. presidential election would impact Take-Two’s future or maybe gaming’s future.
Zelnick stated, “We’re an leisure firm. We’re centered on leisure, not politics. I’m actually enthusiastic about our future.
Requested in regards to the determination to promote Non-public Division and if it was a tricky time for unique mental property, Zelnick stated, “I think it’s always a tough time for new IP. We beat the risk in Private Division, and that risk was based on a thesis that there were a lot of great independent creators out there we could work with and perhaps build some massive franchises within that division.”
He added, “The team did a great job, led by Michael Worosz. Virtually everything that they invested in did well, and Outer Worlds did really, really, really well. But nothing, nothing broke out to the level of one of the core intellectual properties at 2K or Rockstar, and our real mission and vision is to make the biggest hits in the entertainment system. That’s what we do. We do that in mobile. We do that in content.”
That led to the choice to divest.
Zelnick stated Rockstar hasn’t introduced a brand new GTA On-line for GTA 6, and he stated the labels make such bulletins. However he famous that the corporate doesn’t essentially must sundown prior iterations in on-line because it launches model new titles. For instance, in China, NBA 2K On-line coexists with NBA 2K On-line 2.
Concerning the Nintendo speak about about backward compatibility for Swap video games, Zelnick stated, “I’m always optimistic when people are investing in the business and seeking to innovate.” A spokesman added that the corporate is all the time proud of platforms that provide backward compatibility, given the power of Take-Two’s catalog.
As for layoffs throughout gaming, Zelnick stated, “I think that most companies have gotten to whatever restructuring they needed to do. And as you know, the industry is going once again, and I think it will remain the fastest growing part of the entertainment business for some time to come.”
Since Take-Two capitalizes its prices, Rockstar’s spending on GTA 6 exhibits up on the stability sheet for now, and the corporate expects to incur advertising charges across the launch, stated Hannah Sage, EVP of finance and chief accounting officer, in an interview with GamesBeat. She stated the corporate largely hit its monetary targets.
