WASHINGTON (dpa-AFX) - Video-game publisher Take-Two Interactive Software Inc. (TTWO) said Monday after the markets closed that it swung to a fourth quarter profit, as revenue more than doubled due to the successful release of 'BioShock Infinite' and catalog sales of its iconic titles.
The company's quarterly earnings per share, excluding items, also breezed past Wall Street expectations as did its quarterly revenue.
However, the company forecast first quarter results below analysts' current consensus estimates.
Strauss Zelnick, Chairman and CEO of Take-Two, said, 'With Rockstar Games launching Grand Theft Auto V in September, fiscal 2014 is poised to be one of our best years ever. Looking ahead, we have an extensive pipeline of next-generation and emerging platform titles in development, including both new intellectual property and releases from our proven franchises. As a result, our current outlook is to be profitable on a non-GAAP basis in fiscal 2015 and for the foreseeable future.'
Take-Two shares are currently gaining 4.57% in after hours trading after closing the day's regular trading session at $16.39, down 5 cents. The shares trade in a 52-week range of $7.37 to $16.68.
Rival Electronic Arts Inc. (EA) last week reported lower fourth quarter profit, as revenues declined with lesser production in packaged titles for consoles. Adjusted profit improved from last year, but still fell short of Street estimates. However, the company forecast fiscal year 2014 earnings above analyst estimates.
Also last week, Activision Blizzard Inc. (ATVI), the world's largest video-game publisher, reported first quarter profit that increased from last year, driven by continued strong performance of its key franchises and successful debut of its 'Starcraft II: Heart of the Swarm' PC game. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its adjusted revenue. However, the company gave an in-line earnings outlook and down-beat revenue forecast for the second quarter.
Video-game companies are searching for new avenues to improve their earnings as game shoppers are unwilling to buy the expensive video-games, amidst weak economy and high unemployment rate. The growing use of smartphones and tablets for gaming has also made a dent in the sales of these expensive video-games.
New York-based Take-Two, which publishes the blockbuster Grand Theft Auto series, reported net income for the fourth quarter of $22.5 million or $0.24 per share, compared to a net loss of $66.8 million or $0.79 per share for the year-ago quarter.
Income from continuing operations for the fourth quarter was $21.2 million or $0.23 per share, compared to a loss from continuing operations of $66.0 million or $0.78 per share in the prior year quarter.
Excluding items, adjusted net income for the fourth quarter was $42.9 million or $0.38 per share, compared to an adjusted net loss of $50.9 million or $0.60 per share in the fourth quarter of last year.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.23 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net revenue for the fourth quarter more than doubled to $299.49 million from $148.08 million a year ago. Adjusted net revenue for the latest quarter was $303.1 million. Eighteen analysts had a consensus revenue estimate of $280.36 million for the fourth quarter.
The company said the largest contributors to fourth quarter net revenue were the release of BioShock Infinite; catalog sales led by Grand Theft Auto IV, Red Dead Redemption and Sid Meier's Civilization V; continuing sales of NBA 2K13 and Borderlands 2; and the release of Major League Baseball 2K13.
Catalog sales accounted for 25% of adjusted net revenue. Revenue from digitally delivered content grew 192% year-over-year and accounted for 27% of adjusted net revenue in the quarter.
Launched on March 26, 'BioShock Infinite' was the top-selling console title in March, enjoyed significantly higher first month sell-through than any other BioShock release, and has sold-in more than 3.7 million units to date.
During the quarter, 2K entered into an exclusive multi-year agreement with WWE granting 2K the exclusive worldwide rights to publish the popular WWE video game franchise across all major platforms and distribution channels. WWE 2K14 is planned for release on October 29, 2013.
Looking forward to the first quarter, the company forecasts adjusted net revenue of $100 million to $125 million and an adjusted net loss in the range of $0.70 to $0.55 per share. Analysts currently expect the company to report a loss of $0.03 per share on revenue of $217.25 million for the first quarter.
For the fiscal year ending March 31, 2014, the company forecasts adjusted net revenue of $1.75 billion to $1.85 billion and adjusted earnings of $2.05 to $2.30 per share. Analysts currently expect the company to earn $2.26 per share on revenue of $1.78 billion for the fiscal year 2014.
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