Take-Two Reveals No Grand Theft Auto 6 Release in Current Fiscal Year

Take-Two has released its financial results for the fourth fiscal quarter, narrowing down the release window for Grand Theft Auto 6 while incurring significant losses. The company reported a net revenue of $1.40 billion, a 3% decrease from the previous year, and a net loss of $2.9 billion, primarily due to goodwill impairment and restructuring charges. Total net bookings stood at $1.35 billion, a 3% decrease year-over-year. For the full fiscal year, net revenue remained flat at $5.35 billion, while net loss increased to $3.74 billion. Total net bookings rose 1% to $5.33 billion. Initially, Take-Two had hinted at a fiscal 2025 release for Grand Theft Auto 6, but the company has now confirmed a fall 2025 release window, placing it in the fiscal 2026 period. CEO Strauss Zelnick expressed enthusiasm for the title, stating that expectations for its commercial impact continue to grow. He declined to confirm whether these expectations surpass those of previous games, emphasizing the company's preference to discuss success after it has been achieved. Grand Theft Auto 5 has sold approximately 200 million units worldwide, with engagement in Grand Theft Auto Online exceeding expectations. The audience size for Grand Theft Auto 5 grew 35% for the full year, while Grand Theft Auto Online's audience grew 23%. Red Dead Redemption 2 has sold almost 64 million units worldwide. On the 2K side, NBA 2K24 has sold-in 9 million copies, down from 11 million for NBA 2K23. WWE 2K24 has been a success, with the highest Metacritic average for the franchise since Take-Two acquired it, and Borderlands 3 has outpaced forecasts. Take-Two's Zynga division delivered outstanding results, with Toon Blast and Match Factory performing well and Rollic achieving 3.5 billion cumulative downloads. Despite these positives, Take-Two posted a GAAP net loss of $2.9 billion for the quarter, primarily due to $2.18 billion in goodwill impairment charges and $304.3 million in acquisition-related intangible asset charges. The company also incurred $93.3 million in charges related to its third cost-reduction program. Zelnick attributed the need for three cost-cutting programs to integration savings from the Zynga acquisition, post-pandemic consumer behavior, and a desire to improve efficiency. Excluding goodwill impairment and amortization, Take-Two reported a fourth-quarter EBITDA of negative $19.6 million. For the full year, this would have been a positive EBITDA of $272 million. The company forecasts a net loss in fiscal 2025 between $606 million and $674 million, primarily due to a $710 million amortization hit. Revenues are expected to be between $5.57 billion and $5.67 billion, up 4% to 6%, with bookings between $5.55 billion and $5.65 billion, also up 4% to 6%. Zelnick expressed confidence in the company's ability to achieve new levels of success, deliver sequential growth in net bookings, and drive scale, margins, and industry-leading returns for shareholders.