Take-Two digital revenue rises 128 percent
Grand Theft Auto parent publisher's digital business makes up 52 percent of all revenue; company posts overall loss of $47.1 million.
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Take-Two's digital business is booming. The company today reported earnings for the quarter ended June 30, revealing revenue from digitally delivered content grew 128 percent year-over-year and accounted for a record 52 percent of net revenue.
Overall, Take-Two net revenue was $144.3 million for the quarter, compared to $226.1 million last year. The company posted a loss of $47.1 million for the period, better than the loss of $98.8 million it took last year.
The company pointed out that the same quarter last year benefited from the release of Max Payne 3 and Spec Ops: The Line.
Take-Two's loss includes an impairment of capitalized software development cost related to a 2K title currently in development of $29.6 million, though this game was not specified. As of June 30, Take-Two had cash and cash equivalents of $646.3 million.
The biggest contributors to Take-Two's bottom line for the quarter were Borderlands 2, NBA 2K13, Grand Theft Auto IV, and BioShock Infinite. Catalog sales made up 60 percent of net revenue, led by the Borderlands franchise, the GTA franchise, and Red Dead Redemption.
"Our better-than-expected first quarter results demonstrate that the market remains strong for the highest-quality interactive entertainment," Take-Two CEO Strauss Zelnick said in a statement. "We continue to benefit from robust demand for our recent genre-leading releases, iconic catalog titles and growing portfolio of innovative digitally delivered offerings."
Take-Two is currently holding a call to discuss the results and answer analyst and media questions.