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NEWS

Take-Two Losses Grow to $50m

Kris Graft's picture

By Kris Graft

March 10, 2009

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New York publisher Take-Two is still enjoying the success of Grand Theft Auto IV several months after its release, but sales of the game weren't enough to counter mounting losses.

Revenues for the quarter ended January 31 were $256.8 million, up from $240.4 million for the same quarter a year ago. Sales drivers were GTA IV, Carnival Games, NBA 2K9 and Midnight Club: Los Angeles. The firm beat the top end of sales guidance, which was set at $225 million.

The company said it has shipped over 13 million units of GTA IV worldwide as of the end of the quarter.

Net loss widened to $50.4 million, up from $38 million a year ago. Take-Two pointed to higher marketing, legal, and research and development expenses.

Titles currently known to be in the works at Take-Two include the next GTA IV downloadable content, GTA: Chinatown Wars, BioShock 2 and Red Dead Redemption, among others.

Chairman Strauss Zelnick warned of continuing economic hardship. "Looking to the balance of the year, the economy remains challenging and uncertain, and our industry will not be immune to this environment.

"Consumers will continue to be highly selective in their purchases, including interactive entertainment. We need to deliver innovative, exceptionally compelling products to compete for this more limited consumer spending, and we are confident in our ability to do so."

Take-Two also provided initial non-GAAP revenue guidance of $200-$220 million, with a loss of 10-20 cents for the April quarter.

Full-year non-GAAP earnings guidance is in the range of breakeven to 20 cents per share on $1.1 to $1.25 billion in sales.

lifeat30fps's picture
On March 11th lifeat30fps said:

If Take Two is smart, they took a timed exclusive so they can scoop up that PS3 money in the summer. They might not be that smart, though.

Brian
www.brianwoods.com

themule's picture
On March 11th themule said:

no more timed or full exclusive stuff confirmed.

flowmastah's picture
On March 11th flowmastah said:

Something is seriously wrong with your cost structure if you can shift 13 million units of your last big release and still be in the red.

NickgamertagO1's picture
On March 10th NickgamertagO1 said:

Yeah, but even if the PS3 version was able to muster $50 million in DLC sales, that would have just covered the $50 million MS paid for them, and they'd break even lol. Well MS did pay for both DLCs so I guess in the long run maybe it would have made Take Two more to have just released it on both...I guess we'll never know. But most publishers are losing so this isn't so surprising.

manhattan's picture
On March 10th manhattan said:

$50m...hmmm. PS3 owners who were robbed of the Lost & Damned DLC could've covered that...perhaps.