Take-Two Loses $55.5 Million in Q3

Take-Two Interactive today announced its third-quarter fiscal results for the period ended July 31. Total sales were $138.6 million, which is way down compared to $433.8 million for the same quarter of fiscal 2008, which benefited from the post-launch performance of GTA IV. Net loss for the quarter was $55.5 million (or $0.72 per share) compared to net income of $51.8 million (or $0.67 per share) in the third quarter of fiscal 2008. The results are not surprising since there were no really major releases and sales were driven by catalog titles like GTA IV, The BIGS 2 and Major League Baseball 2K9. 

A look at the first nine months of the fiscal year isn't pretty either, thanks to the tough comp with GTA IV. Sales totaled $625.1 million, compared to $1.2 billion during the same period a year earlier. Net loss for the first nine months of fiscal 2009 was $115.9 million (or $1.51 per share) compared to net income of $112.1 million (or $1.48 per share) for the 2008 period.

"We remain focused on our core strategy of delivering high quality interactive entertainment experiences and exceptional value through our catalog of proven titles. While the economy and retail environment continue to be challenging, we are optimistic that 'must have' triple-A and value products will be key drivers this holiday season. That said, we are maintaining a prudent approach to our business outlook for the remainder of this year and as we head into fiscal 2010. We will continue to invest our resources in initiatives that will enhance our industry-leading creativity and innovation," said Strauss Zelnick, Chairman of Take-Two.

Ben Feder, Chief Executive Officer of Take-Two, added, "Our strong lineup for the balance of this year includes a broad array of titles that we believe will appeal to both hard core and casual gamers. Anchored by several new titles from our blockbuster Grand Theft Auto series and the latest installment of our #1-rated NBA 2K franchise, our holiday portfolio will also feature Borderlands, a genre-defining new intellectual property. Looking ahead, we will continue to support our product development efforts with a solid balance sheet, operational improvements, and a creative team that is among the most talented in our industry."

Take-Two should finish the year strong. The publisher's Q4 slate includes The Ballad of Gay Tony episodic DLC for Xbox Live, the retail disc of Episodes from Liberty City for Xbox 360, GTA: Chinatown Wars and Beaterator on PSP and iPhone/iPod Touch, NHL 2K10, as well as the aforementioned NBA 2K10 and Borderlands.

For the fourth quarter and full year ending October 31, Take-Two expects revenue between $350 and $375 million for Q4 and between $975 million and $1 billion for the full year.