Take-Two Interactive Software(US:TTWO)2024-11-06 23:07Revenue Performance - Take-Two's Grand Theft Auto products generated 12.9% of net revenue for the six months ended September 30, 2024[132]. - Net revenue from digital online channels comprised 96.4% of net revenue for the six months ended September 30, 2024[136]. - Console revenue comprised 37.2% of net revenue for the six months ended September 30, 2024[135]. - Total net revenue for the three months ended September 30, 2024, was $1,353.1 million, representing a 4.1% increase from $1,299.2 million in the same period last year[150]. - Total net revenue for the six months ended September 30, 2024, was $2,691.3 million, an increase of $107.4 million or 4.2% compared to $2,583.9 million in the prior year[181]. - Mobile revenue accounted for 54.7% of total net revenue for the three months ended September 30, 2024, up from 49.7% in the prior year[152]. - Net revenue from recurrent consumer spending (RCS) increased by $78.6 million, accounting for 79.7% of net revenue for the three months ended September 30, 2024, compared to 77.0% in the prior year period[153]. - Net revenue from digital online channels rose by $60.3 million, representing 96.1% of total net revenue for the three months ended September 30, 2024, up from 95.4% in the prior year[154]. - Net revenue from Match Factory! contributed $73.6 million to the increase in net revenue for the three months ended September 30, 2024[151]. - The company experienced a decrease in net revenue from the Grand Theft Auto franchise by $27.4 million for the three months ended September 30, 2024[151]. - The company reported a decrease in net revenue from console games by $55.6 million, accounting for 36.3% of total net revenue for the three months ended September 30, 2024[152]. - Net revenue from PC and other increased by $15.5 million, accounting for 9.0% of total net revenue for the three months ended September 30, 2024[152]. - Net revenue earned outside the United States accounted for 39.8% of total net revenue for the three months ended September 30, 2024[226]. Profitability and Expenses - Gross profit for the three months ended September 30, 2024, was $727.9 million, a significant increase of 75.2% compared to $415.4 million in the prior year[150]. - Gross profit as a percentage of net revenue increased to 53.8% for the three months ended September 30, 2024, compared to 32.0% in the prior year[155]. - Total operating expenses for the three months ended September 30, 2024, were $1,025.1 million, a 75.7% increase from $959.1 million in the prior year[148]. - Total operating expenses increased by $66.0 million, accounting for 75.7% of net revenue for the three months ended September 30, 2024, compared to 73.8% in the prior year[158]. - Selling and marketing expenses increased by $126.7 million, representing 34.1% of net revenue for the three months ended September 30, 2024, compared to 25.8% in the prior year[158]. - General and administrative expenses rose by $74.7 million, accounting for 18.7% of net revenue for the three months ended September 30, 2024, compared to 13.7% in the prior year[161]. - Research and development expenses increased by $14.6 million, representing 18.2% of net revenue for the three months ended September 30, 2024, compared to 17.9% in the prior year[163]. - Operating expenses totaled $1,981.1 million, or 73.6% of net revenue, an increase of $138.5 million or 7.5% from the prior year[188]. Net Loss and Earnings Per Share - The net loss for the three months ended September 30, 2024, was $365.5 million, a 26.9% increase compared to a net loss of $543.6 million in the prior year[148]. - Net loss for the three months ended September 30, 2024, was $365.5 million, an improvement from a net loss of $543.6 million in the prior year[180]. - Basic and diluted loss per share for the three months ended September 30, 2024, was $2.08, compared to $3.20 in the prior year[180]. - For the six months ended September 30, 2024, the net loss was $627.5 million, an improvement from a net loss of $749.6 million in the prior year period[208]. - Basic and diluted loss per share for the same period was $3.61, compared to $4.42 in the prior year[208]. Cash and Investments - As of September 30, 2024, cash and cash equivalents and restricted cash totaled $1,319.6 million, up from $1,102.0 million at March 31, 2024[222]. - The company had $3.5 million in short-term investments as of September 30, 2024, primarily consisting of bank time deposits[210]. - For the six months ended September 30, 2024, net cash used in operating activities was $(319.4) million, compared to $69.8 million provided in the prior year[223]. - Capital expenditures for the six months ended September 30, 2024, were $71.9 million, with an anticipated total of approximately $150.0 million for fiscal year 2025[225]. - The company had $3,650.0 million of Senior Notes outstanding as of September 30, 2024[211]. Shareholder Actions and Currency Management - The company has authorized the repurchase of up to 21.7 million shares of common stock, with 10.0 million shares remaining available for repurchase as of September 30, 2024[220][221]. - As of September 30, 2024, the company had $332.6 million of forward contracts outstanding to sell foreign currencies and $156.9 million to buy foreign currencies, all with maturities of less than one year[235]. - For the three months ended September 30, 2024, the company recorded a loss of $3.3 million related to foreign currency forward contracts, compared to a gain of $3.6 million in the same period of 2023[235]. - For the six months ended September 30, 2024, the company recorded a gain of $0.2 million related to foreign currency forward contracts, down from a gain of $7.4 million in the same period of 2023[235]. - As of September 30, 2024, the fair value of outstanding forward contracts was immaterial and included in accrued expenses and other current liabilities[235]. - A hypothetical 10% increase in the value of the U.S. dollar against all currencies would decrease revenues by 4.0%, while a 10% decrease would increase revenues by 4.0%[236]. - The company believes that a substantial portion of currency fluctuations would be offset by costs incurred in local currency[236]. Future Outlook - Rockstar Games plans to release Grand Theft Auto VI in the fall of calendar year 2025[126]. - The company expects to continue to deliver new content for its franchises throughout the year[142]. - The NBA 2K Online game in China has over 65 million registered users, making it the top online PC sports game in the region[130]. - The company continues to monitor macroeconomic factors that may affect consumer demand and pricing pressure on products[133].