Take-Two posts 2Q profit, reversing loss
A sharp rise in revenue helped video game publisher Take-Two Interactive Software Inc. post a profit Tuesday for its fiscal second quarter, reversing a year-ago loss.
The company also said it expected to report a smaller loss for the fiscal year than it had originally forecast and raised its revenue guidance.
For the three months ended April 30, the company earned $16.8 million, or 20 cents per share, compared with a loss $10.1 million, or 13 cents per share, in the same period a year earlier.
Excluding stock compensation costs, non-cash interest expenses, a loss on the sale of a subsidiary and other items, Take-Two said it earned 34 cents per share in the latest quarter.
Revenue rose 54 percent to $268 million from $174.3 million.
Analysts, on average, were expecting a profit of 26 cents per share on revenue of $281.3 million, according to a poll by Thomson Reuters.
CEO Ben Feder said games such as "BioShock 2," ''Grand Theft Auto: Episodes from Liberty City" helped drive the quarter's results. But the company's older, "catalog" titles, including "NBA 2K10," also did well, he said.
Looking ahead, Take-Two forecast an adjusted loss of 10 cents to 20 cents per share for the third quarter, on revenue of $250 million to $300 million.
Analysts had been forecasting a loss of 40 cents a share on revenue of $165.4 million.
Feder said in an interview he's pleased with how the rest of the year is shaping up, though the retail environment "continues to be challenging."
Take-Two is still best known for its "Grand Theft Auto" games, and the company said the most recent version, "GTA IV," has sold more than 17 million units around the world. Rockstar games, the studio behind the series, launched "Red Dead Redemption" on May 18, moving it into the third quarter from the second.
Feder said "Red Dead Redemption" has been a success, and while the company was criticized for delaying it, he said it pays to give such high-caliber titles the time they need.
The company still relies on "Grand Theft Auto" to make a profit, and this year, when it doesn't have full "GTA" game launching, it won't do so.
For the full year ending Oct. 31, Take-Two raised its guidance and now expects an adjusted loss of 10 cents to 30 cents per share and revenue of $880 million to $980 million.
In March it had forecast an adjusted loss in the range of 40 cents to 60 cents per share on revenue of $725 million to $925 million.
Analysts expect a loss of 39 cents per share on revenue of $910.5 million.
Take-Two's shares rose 28 cents, or 2.7 percent, to $10.80 in aftermarket trading following the release of the earnings report. They had ended the regular session Tuesday down 12 cents at $10.52.