Take-Two profits rise 148 percent
By
Eddie Makuch, News Editor
Publisher sees net revenue jump 71 percent to $405 million, with profit surging 148 percent to $78.8 million; digital business grows 244 percent.
Grand Theft Auto parent publisher Take-Two Interactive today reported financial results for its third quarter ended December 31, revealing rising revenue and profit. The company posted net revenue of $405 million, up 71 percent from last year. Net income surged by a greater margin, jumping 148 percent to $78.8 million.
Take-Two said the strongest contributors to its bottom line for the period were NB2K13, Borderlands 2, XCOM: Enemy Unknown, and catalog sales led by Grand Theft Auto IV and Red Dead Redemption. Catalog sales made up 22 percent of all net revenue.
NBA 2K13 has now sold through more than 4.5 million copies since launch, the company said. In addition, Take-Two CEO Strauss Zelnick said Borderlands 2 has now shipped 6 million copies and is one of the company's most important long-term properties.
Take-Two's digital sector was another bright spot during the quarter, with revenues in this area rising 244 percent year-over-year, making up 23 percent of net revenue. Success in this area was led by digital sales of Borderlands 2 and its expansions, XCOM: Enemy Unknown, the GTA franchise, and NBA 2K13.
Looking ahead, Take-Two said it expects net revenue for its fourth quarter ending March 31 to come in at $235 million to $285 million, with full-year net revenue hitting $1.15 billion to $1.20 billion. And regarding next-generation platforms, Zelnick said Take-Two has an "extraordinary array of offerings" for these still-unannounced platforms.
By
Eddie Makuch, News Editor
Eddie Makuch (Mack-ooh) is a News Editor at GameSpot. He works out of the company's Boston office in Somerville, Mass., and loves extra chunky peanut butter.
41 comments
1 Like Rockstar's games, Borderlands 2, 2K12...
See? This comes to show, when a publisher does everything it can to make sure studios release good games, it gets rewarded for it.
Watch and Learn, Crapcom.
1 Like I changed my mind,hire more people,and work on borderlands 3 WHILE selling me another DLC for BL2...ready...GO
5 Like I don't need to read the rest of the article,"take-two profits rise"
GOOD...now,if other game companies learn from this model....make good games,people will fight each other to buy them,then they'll buy your DLC,nicely done Take-Two...now sell me one more DLC before you start working on BL3
4 Like Goes to show if you make QUALITY games then consumers will reward you for your efforts. Well done Take Two
4 Like Wow, I can't express how glad I Am that Enemy Unknown did as well as it did! Jake Solomon is probably doing cartwheels right about now!
Good to hear, now if they will just announce GTAV for the PC I will be happy to continue to help.
1 Like It's good to read that Take Two is doing so well with Borderlands 2. When so many game developing companies are closing their doors it's good to read that others are turning a profit. Now if Take Two doesn't use this profit wisely, all is lost. But a series can't last for ever. Lets hope that their next game endeavor proves to be as successful.
@FlashCharge Why would they not use their profits wisely? They have the whole time which is the point of this article! Take Two is one of the few publishers with a great rep along with some of the most important developers in gaming. They know what they are doing especially with building and maintaining franchises.
@WingChopMasta @FlashCharge Sure they've been on a good run, but all it takes is one bad year or two to finish you at this level. The numbers posted may seem phenomenal to the average person, but consider that they had to sell somewhere in the neighborhood of 15 million units just to make an 80 million dollar quarter. When you consider their massive expenses & liabilities, 80 million isn't as big of a cushion as it may seem. There's an insane amount of pressure to keep growing because in the corporate sector, you can't survive unless you're in a constant state of expansion. They've pulled it off thus far. Lets hope they can keep it going.
7 Like Simply put Take-Two is a very smart and wise game company. Can't wait for Grand Theft Auto V.
8 Like This generation is quite possibly the worst in gaming history. Terrible business practices, the evil-ness of EA, Activision poisoning the industry with COD (and don't forget its minions wanting every irrelevant franchise to be more like COD - RE5 & RE6, I'm looking at you), and the downfall of Capcom (DmC is the latest tragedy).
But they were defiantly some gems in this generations, and Take-Two/RockStar are those gems.
@Shango4 @Strider8009 Gearbox is owned by Take Two, Ubisoft.... Naahhhh. They've gotten increasingly worse. No terrible, but bad.
We have seen the rise of CDProjekt, Platinum Games, and some other small time developers, though.
10 Like Take Two = One of the most disciplined, smartly run and patient companies out right now!! Great to see a success story amongst all of the bankruptcies and layoffs in this cray industry.
2 Like Good for them. They clearly let their developers produce quality games, which cannot be said for every publisher.
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@Plasmid_king and rise way, way, way more in September. Grand Theft Auto 5..... September is so far away. :(
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@Plasmid_king You're right. Pirate console version, wait to see if PC gets good port. If so, full price buying. If not, well, didn't lose much anyway, my console gathers dust anyways.
@Plasmid_king no i dont lie, i haven t used my console for like 6-7 months... and i got a new pc..
4 Like Amazing what happens when a company gives its developers the time they need 2 make the games instead of being forced to ship out rubbish once a year like clockwork
11 Like @Nintyfan95 Lol, EA, we all know their CEO's can't read, else they would have taken some notes long ago. The company seems to lose hundreds of millions a year...
22 Like See what happens when you give your developers time to make their games? Great things... that's what.
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