Take-Two Posts Higher Sales but Deeper Losses in Q4

Take-Two Interactive has released its financial results for Q4 and the full year, showcasing significant top-line growth driven by the Zynga acquisition, despite continued losses. Key highlights include a 53% increase in net revenue to $5.35 billion and a 55% rise in net bookings to $5.28 billion, with net losses reaching $1.12 billion. The company's Q4 performance was driven by popular titles such as NBA 2K23, Grand Theft Auto Online, and Red Dead Redemption 2, with Grand Theft Auto 5 shipping 180 million units worldwide and Red Dead Redemption 2 reaching 53 million units. NBA 2K23 has also achieved a record 11 million units sold to date, with the highest-ever virtual currency sales. Despite surpassing its forecast range for Q4 net bookings, Take-Two posted larger-than-expected losses, attributed to impairment charges and capitalized software development costs. The company forecasts net losses for the current fiscal year but expects net bookings to spike to $8 billion in fiscal 2025, with 36 titles slated for release in fiscal 25 and 26. In a pre-briefing call, CEO Strauss Zelnick expressed confidence in achieving the $8 billion target without relying on a major new Grand Theft Auto title, citing a strong pipeline and investment in new IPs. Take-Two also plans to continue supporting the Nintendo Switch beyond this year, with Lego 2K Drive and Zynga's Star Wars Hunters still in the release slate. The company expects mid-generation console refreshes to have a minimal impact on its business, similar to the previous console cycle. With the Zynga acquisition reshaping the business, mobile bookings are expected to grow to 53% of Take-Two's total bookings in the current year, up from 12% in fiscal 22 and 47% in fiscal 23.