Take-Two Losses Grow

Company in bullish forecast shocker

Posted by Staff
Take-Two Losses Grow
Take-Two has reported on its financials for its first quarter of fiscal 2008, showing a net loss exceeding that of the same period last year. In spite of that, it has given a strong forecast for the next fiscal quarter.

Losses for the quarter leading up to January 31st were up to $38 million (18.8 million) from $21.6 million (10.7 million) during the same period a year earlier. Revenue was $240.4 million (119.2 million), a 13.3% drop from last year's $277.3 million (137.5 million).

The company pointed to more new game releases in its previous fiscal year's holiday season as a factor in the year on year drop.

That said, the company bullishly went ahead and predicted revenue of $450 million (223 million) - $500 million (248 million) for the fiscal quarter ending April 30th. The period just encapsulates the April 29th release date for GTA IV.

Take-Two shares closed at $24.65 (12.23), $1.35 (0.67) less than the recent offer of $26 (12.90) per share made by Electronic Arts during its recent takeover bid.

Strauss Zelnick, Take-Two's chairman, commented, "We are pleased with Take-Two's stronger than expected top and bottom line results for the first quarter. Our performance benefited from a diverse range of hit titles in the first quarter, and we are eagerly awaiting the release of Grand Theft Auto IV in the second quarter. We believe that our extraordinary creative assets and improving operational efficiency will be sources of significant value for shareholders as the interactive entertainment industry moves further into the current growth cycle."

Also coming out of the financial new were a couple of tidbits about games, including the announcement of BioShock 2. You can read about it here and get Take-Two's announcement in full here.


deleted 12 Mar 2008 21:32
Correct me if im wrong but wasnt Rockstar verging on bankruptcy until the almost cancelled GTA3 was released and save the world allowing us the joy of doing a hooker then shooting her and running her remains over before reclaiming the purchase price of one F**k!
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