Take-Two Interactive Beats Revenue and Profit Estimates

May 19, 2016, 1:09 PM UTC
Copies of Take-Two Interactive's "Grand Theft Auto V" for the Microsoft's Xbox 360 game system sit on display for sale at a GameStop Corp. store in Peru, Illinois, U.S.
Photograph by Daniel Acker—Bloomberg via Getty Images

Video game publisher Take-Two Interactive Software’s fourth-quarter revenue and profit beat analysts’ estimates, helped by sales of Grand Theft Auto V and its sports titles.

Adjusted net income fell to $51.7 million, or 46 cents per share, in the fourth quarter ended March 31, from $54.3 million, or 49 cents per share, a year earlier.

Take-Two’s adjusted net income in the quarter reflected $5.4 million in tax benefits related to video game development costs, the company said.

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Excluding items, revenue fell to $342.5 million from $427.7 million.

Analysts on average had expected a profit of 26 cents per share and revenue of $306 million, according to Thomson Reuters I/B/E/S.

Take-Two (TTWO) had benefited from the launch of Evolve in the same period last year, as well as sales from the company’s 2014 holiday release slate.

Rockstar Games, the studio that developed Grand Theft Auto, is “hard at work” on future projects that will be revealed soon, Take-Two Chief Executive Strauss Zelnick said in a statement.

However, the company forecast first-quarter adjusted revenue of $225 million to $260 million and a surprise loss of 30 to 40 cents per share.

Analysts on average were expecting a profit of 22 cents per share and revenue of $299 million, according to Thomson Reuters I/B/E/S.

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