Grand Theft Auto
parent, Take-Two Interactive has released its second financial quarter of 2008. In short, it's made a lot of cash:
"Net revenue for the second fiscal quarter was $539.8 million (£276.1m), compared to $205.4 million (£105m) for the same quarter of fiscal 2007"
This revenue is then turned into actual net income of $98.2 million (£50.2m) - and that's got to bring smiles to faces of doubting stockholders in comparison to the same period last year. That saw a net loss of $51.2 million (£26.2m).
However, aside from production costs and relevant taxes, where did this quarter's money go? According to Take-Two's report it went:
* $12.4 million (£6.3m) to 'stock-based compensation expense'.
* $3.8 million (£1.9m) in 'professional fees and legal expenses, primarily related to Electronic Arts’ unsolicited tender offer'.
* $0.9 million (£460.4k) in 'business reorganization costs'.
So, while the Electronic Arts' bid has indeed cost T2 nearly two million pounds in a single quarter, 'stock-based compensation' has cost it more than three times as much. These expenses are noted at the bottom of the report as follows.
"The Company’s stock-based compensation expense for the third and fourth quarters and fiscal 2008 reflects the cost of approximately two million stock options issued to ZelnickMedia that are subject to variable accounting. Actual expense to be recorded in connection with these options is dependent upon several factors, including future changes in Take-Two’s stock price."
(ZelnickMedia is the company run by Take-Two CEO, Strauss Zelnick.)
Still, moving from a loss to a profit is what Zelnick Media gets the big bucks for. It's going to be fascinating to see what the company can do in a quarter free of GTA
.Source: Take-Two Interactive