Take-Two Interactive Software Inc.
Take-Two Interactive Software, Inc. is an American video game holding company.
The company owns two major publishing labels, Rockstar Games and 2K which operate internal game development studios.
Take-Two created the Private Division label to support publishing from independent developers and more recently announced a new internal studio for the label called Intercept Games.
The company also formed Ghost Story Games which was a former 2K studio under the name Irrational Games.
Employees: 7,799
Revenue: $3.505B for FY2022
HQ Location: New York, U.S.
What they do:
The Company develops and publishes products principally through Rockstar Games, 2K, Private Division, and Zynga.
Their products are currently designed for console gaming systems, PC, and Mobile including smartphones and tablets, and are delivered through physical retail, digital download, online platforms, and cloud streaming services.
Their vision and priorities:
They aspire to be the most creative, innovative, and the most efficient entertainment company in the world.
Creativity and innovation are among the core tenets of their organization and are integral drivers if they want to continue to succeed.
To develop the most compelling interactive entertainment on any platform that is relevant to their audiences.
They plan to capitalize on new technologies including direct-consumer, streaming, and subscription models.
Financial and Business Goals
Long-term growth potential for the mobile industry, which is expected to reach over $160 billion in gross bookings within 4 years.
Net bookings of $5.4 to $5.5 billion in Fiscal 2023.
They expect to release 69 new titles across Fiscal 2023 to Fiscal 2025 (excluding any new releases by Zynga).
The combination with Zynga is predicted to expand their mobile Net booking by 50% in Fiscal 2023.
NBA 2K League is predicted to drive profitability in Fiscal 2023.
Outlook for 2023 (ending March 2023)
GAAP net revenue is expected to range from $5.24 to $5.29 billion
GAAP net loss is expected to range from $721 to $704 million
GAAP net loss per share is expected to range from $4.50 to $4.40
The share count used to calculate GAAP net loss per share is expected to be 159.8 million
Net cash provided by operating activities is expected to be over $350 million •
Things to know right now
Take-Two embark on a cost-reduction program
They have embarked on a cost reduction program that they believe will deliver over $50 million of annual savings, which is in addition to the $100 million of annual cost synergies that they plan to realize from their combination with Zynga. These initiatives are expected to optimize the Company’s expense structure, while also positioning them to deliver on its anticipated growth trajectory. The program includes personnel, processes, infrastructure, and other areas, and will primarily focus on corporate and publishing functions.
Bold Beats Strategy
Bold Beats are new content and gameplay modes designed to attract new audiences, deepen engagement for current players and bring back lapsed players. Their studio teams are continually investing in robust bold beat roadmaps that are rigorously tested with data science.
Hyper Casual Approach
Hyper-casual has rapidly grown to become one of the largest and fastest-growing categories in mobile. As one of the largest hyper-casual publishers in the world, Rollic has created a unique development process that leverages data insights and rigorous testing to repeatedly design and publish new, successful hyper-casual titles at a regular cadence. This, in turn, allows the Company to grow its audience, expand the advertising business and act as a growth driver in Asia, in the current market climate.
Competitors
Rockstar Arts
Activision Blizzard
Electronic Arts
Ubisoft
Business Units:
Rockstar Games
Rockstar Games is a video game developer and publisher. The brand is most known for the Grand Theft Auto, Max Payne, L.A. Noire, The Warriors, Bully, Manhunt, Midnight Club, and Red Dead series.
2K
2K Play is a publishing label that covers family-friendly and children's video games. 2K Games handles nearly all other production from Take-Two's internal development studios as well as titles from selected third parties (such as the Borderlands series developed by Gearbox Software).
Private Division
Private Division is Take-Two Interactive’s third publishing label, following Rockstar Games and 2K. Private Division funds and publishes indie games developed by small to mid-sized studios.
Zynga
Zynga has a diverse portfolio of popular game franchises on mobile, including CSR RacingTM, Dragon City, Empires & PuzzlesTM, FarmVilleTM, Golf RivalTM, Hair ChallengeTM, Harry Potter: Puzzles & SpellsTM, High Heels!TM, Merge Dragons!TM, Merge Magic!™, Monster Legends, Toon Blast™, Top Eleven, Toy Blast™, Two Dots, Words With FriendsTM and Zynga PokerTM. Zynga is also an industry-leading platform with the ability to optimize programmatic advertising and yields at scale with Chartboost, a leading mobile advertising, and monetization platform.
Their financial calendar
Q1: May-July - Earnings August 8th, 2022
Q2: August-October- Earnings November 7th, 2022
Q3: November -January - Earnings 6th February, 2023
Q4: February-April - Around 23 May 2023
Next Earnings Report:
23rd March 2023
Positives from the last earnings report Q3 FY23:
GAAP net revenue increased 56% to $1.41 billion. The largest contributors to GAAP net revenue were NBA® 2K23 and NBA 2K22; Grand Theft Auto® Online and Grand Theft Auto V; Empires & Puzzles™; Toon Blast™; Rollic's hyper-casual portfolio; Red Dead Redemption® 2 and Red Dead Online; Words With Friends™; Merge Dragons!™; and Toy Blast™.
Net Bookings grew 60% to $1.38 billion.
Net Bookings from recurrent consumer spending grew 117% and accounted for 78% of total Net Bookings.
Digitally-delivered Net Bookings were up 72% to $1.31 billion, as compared to $762.3 million in last year’s fiscal third quarter, and accounted for 95% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K23; Grand Theft Auto Online and Grand Theft Auto V; Empires & Puzzles; Toon Blast; Red Dead Redemption 2 and Red Dead Online; Rollic's hyper-casual portfolio; Words With Friends; Merge Dragons!; and Toy Blast.
Challenges from the last earnings report Q3 FY23:
GAAP net loss per share was $0.91
Product highlights from the quarter:
Rockstar Games:
On January 19th, they announced that Grand Theft Auto: The Trilogy – The Definitive Edition is available to purchase on Steam, and on sale through February 2nd as part of the Rockstar Games Publisher Sale.
Rockstar Games continued to provide an array of free content for their vast and growing online communities
To celebrate Halloween, Grand Theft Auto Online delivered a month-long schedule of events and gameplay, including the Beast vs. Slasher Adversary Mode, enhanced rewards and payouts, spooky items, and more.
Through the GTA+ premium membership program, enrolled members benefit from a rotation of numerous exclusive in-game benefits, including vehicles, upgrades, and special perks in Los Santos Drug Wars.
Released new updates for Red Dead Online, including the Halloween Hardcore Telegram Mission, and new Call to Arms locations for Halloween and the holidays.
2K
Continued to drive engagement for NBA 2K23 with the launch of seasons that feature new songs by top artists, apparel, themed events, and more.
On October 18th, 2K released NBA 2K23 Arcade Edition, the authentic mobile experience for the NBA 2K basketball game on Apple Arcade.
On October 14th, 2K released PGA TOUR® 2K23, the latest entry in the golf simulation video game franchise.
In December, 2K and HB Studios supported PGA TOUR 2K23 with a limited-edition holiday bundle that included NBA 2K23 and new content featuring branded gear from Barstool Sports, 100 Thieves, and Dude Perfect.
On January 23rd, announced that WWE 2K23 will be coming soon for PlayStation 5, PlayStation 4, Xbox Series X|S, Xbox One, and PC via Steam.
During the quarter, WWE Supercard released new seasons, including new card tiers, official match commentary, and special equipment.
On December 2nd, 2K and Marvel Entertainment released Marvel's Midnight Suns on Windows PC via Steam and Epic Games Store, PlayStation 5, and Xbox Series X|S.
On December 22nd, 2K announced Firaxis Tactical Legends, a new special offer on Steam that was available through January 2, 2023
On October 21st, 2K and Gearbox Software launched New Tales from the Borderlands, a standalone, choice-based interactive narrative adventure set in the Borderlands universe.
On October 24th, 2K and Supermassive Games launched a new Halloween-themed DLC for The Quarry featuring a classic makeover with new character outfits inspired by ‘50s horror
Private Division:
On December 9th, Private Division and Piccolo Studio announced After Us during The Game Awards.
On December 14th, Private Division celebrated its 5th anniversary by revealing a publishing agreement with Bloober Team.
Zynga
On October 26th , CSR Racing 2 released Race Pass, an all-new seasonal way to earn rewards, complete objectives, and unlock some of the most exciting cars in CSR history.
On November 17th, Rollic completed the acquisition of mobile game developer Popcore.
On November 17th, Top Eleven launched a wide slate of in-game updates celebrating the World Cup, including a limited-time mini-game, Penalty Clash, in which players from around the globe could compete for rewards and in-game content.
On November 21st, Harry Potter: Puzzles & Spells launched Club Quidditch, the game’s first-ever Club vs. Club competition, which drove a meaningful lift in player engagement and monetization during the event.
In December, Rollic’s game Balls’n Ropes reached the #1 most downloaded game in the U.S.
During the quarter, Small Giant released several in-game events in Empires & Puzzles including Alliance Quest Musketeers, the game’s biggest-ever Black Friday event in terms of revenue, and Contest of Elements.
Latest Annual Report Findings:
They delivered Net bookings of $3.4 Billion
They delivered strong operational results with net revenue of $3.5 Billion
They hired 1,000 new developers to expand and grow the pipeline of their games.
They have broadened their game portfolio to make more titles available through different platforms. They also continue to offer games through streaming and subscription models in order to offer more variety to consumers directly.
Grand Theft Auto achieved new levels of success with the title selling more than 165 million units.
WWE 2K22 marked the return of the wrestling series, with the title achieving the highest Metacritic scores on both Xbox and PlayStation platforms in franchise history.