Take-Two Interactive Software, a key player in the video game industry, has reported a wider-than-expected fiscal first-quarter loss as they anticipate an upward trend in net bookings for the ongoing three-month period. The video game publisher remains confident in its projections, aiming for significant growth in its key performance metric.
As a hallmark of the video game industry, net bookings — encompassing both digital and physical product sales — are forecasted to range between $1.42 billion and $1.47 billion for the fiscal quarter ending September 30, according to the company's recent announcements. This follows a slight increase in net bookings during the previous June quarter, which rose 1% to $1.22 billion, with popular titles such as NBA 2K24, Grand Theft Auto Online, and Grand Theft Auto V contributing significantly to these figures. For fiscal 2025, Take-Two remains unwavering in its expectations, projecting net bookings between $5.55 billion and $5.65 billion.
The company's shares showed a positive response, rising by 2.3% in premarket trading on Friday. Chief Financial Officer Lainie Goldstein articulated the company’s outlook during a recent conference call, emphasizing expectations for a 5% increase in recurrent consumer spending. This forecast is believed to be fueled by mobile offerings, including the addition of Match Factory! and the growth of Toon Blast; however, these are partially counteracted by declines in the hypercasual mobile segment and Empires & Puzzles. Despite these optimistic projections, the projected net loss for the fiscal year has escalated, now expected to be in the range of $3.95 to $4.33 per share, compared to an earlier forecast of $3.50 to $3.90.
Analysts on Capital IQ are anticipating a GAAP loss of $3.24 per share. Maintaining faith in its full-year revenue forecast, Take-Two is targeting a range of $5.57 billion to $5.67 billion. The company revealed a net loss of $1.52 per share for the first fiscal quarter, widening from a $1.22 loss reported in the same quarter last year, diverging from the Street's expectation of a $1.37 per-share loss.
On the revenue side, Take-Two reported a year-over-year increase of 4%, reaching $1.34 billion. Goldstein disclosed during the call that the cost of revenue declined by 6% to $567 million, while operating expenses saw an increase of 8%, hitting $956 million. Looking ahead to the current quarter, the company predicts a net loss in the range of $2.15 to $2.30, alongside anticipated revenue between $1.29 billion and $1.34 billion.
Chief Executive Strauss Zelnick conveyed the company's strategic priorities, expressing optimism about achieving sequential increases in net bookings for fiscal years 2026 and 2027, aiming to enhance long-term shareholder value. Stock Price: 146.48, Change: +7.70, Percent Change: +5.55 $TTWO.