Take-Two Profits $48.5m in March 2011 Year, Loses $22.1m in Q4

by Jacob Mazel, posted on 24 May 2011 / 2,866 Views

Take-Two Interactive has just announced its results for the year to March 2011, and for the March 2011 quarter. During the year, the company earned $1.136 billion ($1.136b) in revenue, and had a profit of $48.46 million ($48.46m). Those figures were up from the $762.9m in revenue, and the $123m loss the company posted in the March 2010 year. The company cites NBK 2k11 and Red Dead Redemption, each of which topped 5m units, as major contributors to the profits achieved in the non-GTA year.

During the March 2011 quarter, revenues reached $182.23m, while losses came to $22.05m. For the quarter ending June 2011, Take-Two expects revenues to reach $325m to $375m - as much as double what it earned in the March 2011 quarter. For the entire year to March 2012, Take-Two expects revenue of $1.0b - $1.1b - which means Grand Theft Auto V, which would probably generate $300m or more in revenue with just one shipment - isn't arriving by March 2012. On a non-GAAP measure of accounting, the company expects to profit, but with more expenses included, Take Two expects to sink back into the red during the March 2012 year.

According to Take Two "The strongest contributors to net revenue in the fourth quarter this year included NBA(R) 2K11, Top Spin 4, Major League Baseball(R) 2K11, Grand Theft Auto IV: Complete and Red Dead Redemption: Undead Nightmare (standalone disc). Catalog titles that contributed to the Company's performance in the recent period were led by Red Dead Redemption, the Grand Theft Auto franchise and Borderlands. Digitally delivered content accounted for 15% of the Company's net revenue in the fourth quarter, driven by strong sales of offerings for Red Dead Redemption, the Grand Theft Auto franchise, Borderlands and the Sid Meier's Civilization franchise."

Strauss Zelnick, Chairman and CEO of Take-Two, commented, "Fiscal 2011 was a very strong year for Take-Two. We generated revenue growth and margin expansion that consistently exceeded expectations, and also took action to position the Company for even greater success over the long-term. Recent achievements include extending the employment agreements with Rockstar's key creative talent, renewing our multi-year partnership with the NBA, and entering into two new partnerships to develop online games for Asian markets. These initiatives and others will enable us to continue to execute our core strategy of developing groundbreaking triple-A titles for traditional platforms, while at the same time prudently investing in triple-A entertainment experiences for emerging gaming platforms, both domestically and abroad."

"For fiscal 2012, we again expect to deliver Non-GAAP profits due to our diverse and balanced portfolio of new and catalog titles. Our exciting lineup of releases includes unique, cutting-edge titles such as L.A. Noire,the return of long-awaited industry icons like Duke Nukem, and a broad array of other offerings that promise to delight audiences around the world.

"While it is still very early to discuss fiscal 2013 (April 2012 to March 2013), we have a very strong pipeline of titles in development and currently expect to achieve substantial earnings growth, including Non-GAAP earnings per share in excess of $2.00." That sounds like the GTA V year.

Finally, Take-Two reported that its revenue was split by platform in the following manner by quarter and fiscal year:

- In the March 2011 quarter, North America revenue was 71% of all revenue, and all other regions were 29%. In the previous March quarter, the split was 72% and 28%.

- In the March 2011 year, revenue was split 61% for North America, 39% everywhere else. That compares to 67% and 33% in the previous March year. As revenue was up by almost $400m from the previous fiscal year, Take Two had growth in North America and the remainder of the world.

- In the March 2011 quarter, X360  was Take-Two's lead platform on a revenue basis (46%), followed by PS3 (32%), Wii (7%), PC (7%), PSP (3%), DS (3%) and PS2 (2%). Results were similar in the previous March quarter - X360 was the top platform (45% of revenue) followed by PS3 (25%), PC (10%), Wii (9%), PSP (4%), DS (4%), and PS2 (3%). 

- Given Take-Two revenues of $182m in the March 2011 quarter vs. $233m in the March 2010 quarter, we can see that X360 revenue fell from $105m to $87m, PS3 revenues were flat at $58m, PC revenues fell from $23m to $13m, Wii fell from $21m to $13m, PSP and DS each fell from $9m to $5m, while PS2 fell from $7m to $4m.

- For the year to March 2011, X360 (40%) and PS3 (39%) generated a nearly equal share of Take-Two revenue. PC (9%), Wii (5%), DS (3%), PS2 (2%) and PSP (2%) accounted for the remaining 21% of revenue. In the March 2010 year, X360 (47%) was more clearly the lead platform, with PS3 (21%), PC (9%), Wii (8%), PSP (6%), PS2 (5%), and DS (4%) well behind.

- Given March 2011 year revenues of $1136m and March 2010 year revenues of $763m, we can see that X360 revenue increased from $359m in the March 2010 year to $454m in the March 2011 year. PS3 revenue increased even more - jumping from $160m to $443m over the same time frame. Wii revenue fell from $61m to $57m, while PC increased from $69m to $102m. DS revenue grew from $29m to $34m, while PSP revenue fell from $46m to $23m. PS2 revenue dropped from $38m to $23m.

That's all for Take-Two - Sony's results (beyond the $3.2b loss) will be in later this week.

Contact VGChartz at jmazel@vgchartz.com


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4 Comments

Munkeh111 (on 25 May 2011)

@ ali, while Rockstar have released all their games in April or Spring, I reckon GTA V might have to wait until the holidays, but I still think there is a very strong chance of GTA V being announced this E3


Ail (on 25 May 2011)

if I am correct with GTA5 release date that means that this coming E3 is the last one before it releases so we might actually see some GTA5 material at E3...


Ail (on 25 May 2011)

No surprise concerning GTA5, TTWO has had good success with Q2 releases so I'm guessing GTA5 will release around May 2012


Boutros (on 24 May 2011)

We want software shipments!