Take-Two Raising Financial Outlook For Fiscal 2020

After a strong showing with fiscal Q2 2020 financial numbers, Take-Two Interactive Software, Inc. [stock_market_widget type="inline" template="generic" color="default" assets="TTWO" markup="(NASDAQ: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] is raising its operating outlook for the full fiscal year and forecasting higher numbers for the upcoming next quarter.

For the latest fiscal quarter ending Sept. 30, Take-Two announced incoming revenue of $857 million, a sharp uptick just shy of 75% from the same period last year.

With those higher than expected numbers arriving this week, the company is now expecting the quarter ending Dec. 31 to see net income between $159 – $170 million, with net revenue expected in the $915 – $965 million range.

Revenue for the full fiscal year ending in March is additionally expected to land somewhere near the $3 billion mark.

Revenue for this latest quarter and the coming fiscal quarter are seeing stronger than average numbers based on the high-profile releases of sequels to major franchises, such as Borderlands 3 and the eSports focused NBA 2K20.

The company also just marked the anticipated launch of The Outer Worlds, a new first person, sci-fi RPG from long-running developer Obsidian. The RPG-focused development team was recently snapped up by Microsoft and teamed up with Take-Two Interactive for publishing The Outer Worlds on PC and consoles.

Discussing recent franchise releases and the company’s increased guidance for the coming months, Take-Two Chief Executive Officer Strauss Zelnick commented:

As a result of our better-than-expected second quarter operating results, we are once again raising our operating outlook for fiscal 2020. The third quarter is off to a solid start with the launches of The Outer Worlds and and WWE 2K20, and we will bolster our holiday line-up with offerings for Google Stadia and Sid Meier’s Civilization VI for PlayStation 4 and Xbox One.

While WWE2K20 has seen a relentless onslaught of negative reviews over major bugs and glitches, that negative press doesn’t seem to have made a major impact on the company’s bottom line yet.

The larger number of major titles released through various Take-Two subsidiaries or publishing deals is also keeping the company’s numbers higher, such as the lauded Red Dead Redemption 2 and its multiplayer counterpart Red Dead Online arriving on PC a year after the game’s original console launch.

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Ty Arthur has spent the last decade of his journalism career covering everything from cutting-edge tech to local news through outlets such as the Houston Chronicle. He has focused on the counterculture aspects of society, from marijuana legalization to underground music through Metalunderground.com and rapidly changing trends in the entertainment industry. He lives in the cold, dark north with his wife and son. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.


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