Tags: Take-Two | Profit | BioShock | Game

Take-Two Profit Tops Estimates on ‘BioShock’ Shooter Game

Monday, 13 May 2013 05:55 PM

Take-Two Interactive Software Inc. reported fourth-quarter profit that beat analysts' estimates, helped by sales of its "BioShock Infinite" shooter game.

Net income from continuing operations totaled $21.2 million, or 23 cents a share, in the period ended March 31, New York-based Take-Two said in a statement Monday. Profit excluding some items was 38 cents a share, above the 23-cent average estimate, according to data compiled by Bloomberg.

Sales doubled to $303.1 million, after some adjustments, beating the average estimate of $279.9 million.

Take-Two has expanded its portfolio of hit games beyond "Grand Theft Auto" in the last two years to titles including "Borderlands" and "NBA 2K13," helping it achieve a profitable year without the release of a new version of the shooter game. "BioShock Infinite," introduced on March 26, sold more in its first month than previous versions, the company said.

The shares jumped as much as 6.8 percent in extended trading to $17.50.

Take-Two expects "solid profitability for the foreseeable future," Chairman and Chief Executive Officer Strauss Zelnick said in an interview Monday.

Sales of digitally delivered games, a measure of video-game makers' progress in shifting to Web-sold titles, jumped 192 percent compared with a year earlier, and accounted for 27 percent of overall sales.

Title Delay

The company forecast results this quarter that missed analysts' estimates because of a delay announced earlier this year in the next "Grand Theft Auto" video-game title.

Revenue in the current first quarter will be $100 million to $125 million, Take-Two said. That’s below the $198.9 million average of analysts' estimates compiled by Bloomberg. The loss, adjusted for some items, will be 55 cents to 70 cents a share, larger than the 18-cent loss projected by analysts.

Take-Two had targeted an April release of "Grand Theft Auto 5," the company said in October. In January, the release was moved back to September. This period won’t see any new titles, and instead will rely only on sales of add-on content and previously released games, Zelnick said.

"We have no frontline releases," Zelnick said. "Our release schedules are less important than delivering quality titles, and we feel like we ticked all the boxes in the quarter."

The shares slipped less than 1 percent to $16.39 at the close in New York and have climbed 49 percent this year.

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Take-Two Interactive Software Inc. reported fourth-quarter profit that beat analysts' estimates, helped by sales of its "BioShock Infinite" shooter game.
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2013-55-13
Monday, 13 May 2013 05:55 PM
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