WASHINGTON (dpa-AFX) - Video-game publisher Take-Two Interactive Software Inc. (TTWO), Tuesday reported a second-quarter loss that widened from a year ago, due mainly to lower revenue and higher operating expenses. Nonetheless, Take-Two provided a robust outlook for the third quarter and lifted its expectations for 2014. The company indicated vibrant game launches going forward.
Take-Two said revenue for the quarter tumbled to $148.8 million from $273 million last year and excludes Grand Theft Auto V which was released just two weeks before the close of the quarter.
Including the results of its popular video game Grand Theft Auto V, revenue for the quarter was $1.27 billion compared with $288 million in the prior year. On average, 19 analysts polled by Thomson Reuters expected revenue of $953.86 million for the quarter.
Chief Executive Strauss Zelnick said, 'We currently have more than 10 unique titles planned for next-generation consoles, including multiple releases slated for fiscal 2015.'
The New York-based company incurred a net loss of $124 million or $1.40 per share for the quarter, wider than $12.5 million or $0.15 per share a year ago.
Adjusted earnings for the second quarter quarter were $325.6 million or $2.49 per share compared with $10 million or $0.11 per share a year ago. Nineteen analysts had a consensus earnings estimate of $1.72 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total expenses for the quarter climbed to $174 million from $118 million a year ago.
For the third quarter, the company expects adjusted earnings of $1.20 to $1.35 per share and revenue of $650 million to $700 million. Analysts currently expect earnings of $1.22 per share on revenue of $640.89 million for the quarter.
For the fiscal year 2014, the company now sees adjusted earnings in the range of $3.50 to $3.75 per share and adjusted revenue of $2.20 billion to $2.30 billion. Earlier, adjusted earnings were expected in the range of $2.25 to $2.50 per share and revenue of $1.775 billion to $1.875 billion.
Analysts currently expect earnings of $2.80 per share on revenue of $2.03 billion for 2014.
The company's bigger rival Electronic Arts Inc. (EA) today said its second-quarter loss narrowed, led by revenue growth and cost management, with results topping expectations. The company also lifted its outlook for the full year.
Take-Two Interactive stock closed Tuesday at $17.95, up $0.27 or 1.53%, on a volume of 5 million shares on the Nasdaq. In after hours, the stock gained $0.23 or 1.28% at $18.18. In the past 52-week period, the stock traded in the range of $10.61 - $19.25, on a three-month average volume of 2.74 million shares.
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