‘NBA 2K’ Owner Posts $1.1B Quarter, Misses Estimates

Take-Two Interactive reported mixed results in its latest earnings report, adding to a growing list of video game companies with underwhelming profits this year.  

The New York-based company — which owns major video game publishers including Rockstar Games and 2K — generated $1.1 billion in revenue in fiscal Q1, a 36% increase year-over-year. 

• Projected adjusted earnings per share range between $4.60 to $4.85 in FY2023.
• Wall Street estimates expected an average of $5.37 per share, per Bloomberg.
• The company has also seen its stock fall roughly 29% in 2022.

Take-Two will look to garner stronger results for the rest of FY2023 following the acquisition of mobile game developer Zynga for $12.7 billion in May. 

The deal has already paid dividends for Take-Two, which reported $1 billion in net bookings in fiscal Q1 2023, up 40% compared to the same period the year prior. The company also saw recurrent consumer spending — 75% of net bookings — grow 48% during the quarter.

As a result, Take-Two raised its full-year net bookings outlook, projecting a range between $5.8 billion and $5.9 billion, surpassing estimates of $5.42 billion.

Big Deal 

Take-Two’s deal for Zynga allows the company to expand its reach in a mobile gaming market expected to reach $338 billion by 2030. Last year, the market was worth roughly $119 billion.

The acquisition — first announced in January 2022 — was funded with $2.7 billion in financing from JPMorgan Chase, Take-Two’s balance sheet, and a debt issuance.