Take-Two Beats Estimates With $813M Q1

Take-Two Interactive exceeded expectations with its latest earnings report on Monday.

The video game holding company reported $813 million in revenue in Q1 2022, a 2% decrease year-over-year, though it surpassed estimates between $730-$780 million. 

The strong quarter was driven by Take-Two’s recurrent consumer spending, which accounted for 70% of total revenue.

Take-Two’s subsidiaries, Rockstar and 2K, the respective publishers behind “Grand Theft Auto” and “NBA 2K,” were the largest contributors to the recurrent spending total. 

It’s been a busy year all-around for Take-Two. 

• In March, it acquired Hookbang’s game division. The Austin-based software firm will support the development of the NBA 2K series. 
• The same month, it agreed to an exclusive, multiyear partnership with Tiger Woods and acquired HB Studios, the Canadian developer behind “PGA TOUR 2K21.”
• Last month, it acquired Dynamixyz, a leader in facial animation services. The company previously worked on Rockstar’s “Red Dead Redemption 2” and 2K’s “NBA 2K21.” 
• It acquired mobile game developer Nordeus in a deal worth up to $378 million in June.

Take-Two’s fiscal 2021 revenue reached $3.37 billion, a 9% increase from 2020’s full-year tally. It expects Q2 2022 revenue to range from $740 million to $790 million.

The company plans to release a whopping 62 new titles across its properties by March 2024.