Take-Two losses top $50 million, GTAIV ships 13 million

"Unusual" costs offset Grand Theft Auto publisher's increased sales during November-January quarter; Beaterator, Borderlands, Mafia 2, BioShock 2, Red Dead Redemption, and next GTAIV expansion all due pre-Halloween.

Ever since analyst Michael Pachter upgraded his rating of Take-Two Interactive to "buy" last week, the publisher's share price has been slowly rising skyward. Just today, shares in the company rose nearly 14 percent to hit $6.85 at the closing bell--nearly $2 more than where it was when Pachter issued his prognostication.

"13 million copies? The cabaret tickets are on me, Roman!"

All that changed at about 4:30 p.m. Eastern time, when Take-Two's share price began to sink in after-hours trading. The drop was precipitated by the New York-based publisher issuing its earnings report for the November-January quarter, the first of its fiscal year. On one hand, the three-month period saw the company take in $256.8 million in revenues, a 7 percent increase from $240.4 million during the same period the prior year. On the other, losses for the quarter totaled $50.4 million ($0.66 per share), up from $38 million ($0.52 per share) the year prior.

Take-Two blamed the increased loss on stock-based compensation, bigger marketing and development expenses, and $4.9 million in "unusual" legal bills. The company did not say if the bills were related to its successful foiling of a takeover bid by Electronic Arts last year.

Of Take-Two's Nov.-Jan. revenues, some $60 million was from Grand Theft Auto games, including the blockbuster Grand Theft Auto IV. The company also announced today that the critically lauded Rockstar Games open-world crime adventure has now shipped some 13 million units worldwide on the PC, Xbox 360, and PlayStation 3. Take-Two CFO Lainie Goldstein said that international sales of PS3 and 360 versions of the game are "50/50." In the US, where the game has sold--not shipped--more than 5.5 million copies, the NPD Group shows the 360 leading the PS3 by around 1 million units.

Unfortunately, in a conference call with analysts after the report, Goldstein declined to offer sales figures for GTAIV's Xbox 360-exclusive expansion, The Lost and Damned. In the aforementioned note, Pachter estimated that the add-on has already sold 1 million units and would sell 2 million by the end of Take-Two's fiscal year on October 31.

Looking ahead to that year, Take-Two executives revealed that the Timbaland-produced PSP game Beaterator--first announced in March 2007--will finally arrive this summer. The season will also see 2K Sports release The Bigs 2 from Dead Rising 2 developer Blue Castle, followed by NBA 2K10 and NHL 2K10 in the fall. They also confirmed that Borderlands, Mafia II, BioShock 2, Red Dead Redemption, and the second GTAIV 360-exclusive expansion would all arrive before Halloween.

In terms of guidance, Take-Two expects to take in $200 to $220 million dollars in revenue during the February-April quarter, for a loss of $0.10 or $0.20 per share. For its full fiscal year, the company expects $1.1 to $1.25 billion dollars in revenues, with per-share earnings ranging from $0.00 to $0.20.

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114 comments
Humorguy_basic
Humorguy_basic

....Oh, and with this loss, don't expect Borderlands on PC now either, at least not this year and maybe not next...! :( Such a shame for all us PC players..!!

Humorguy_basic
Humorguy_basic

13 million? Well, that includes the first expansion I am sure, so let's say 10 million for GTA IV and 3 million for the first expansion. That means about 1.7 million copies sold on PC (PC games sell about 17% of the total PC/Console sales nowadays.), so that's about 300-500,000 expansions to be sold on PC, if and when the expansions are available for it That brings in about $3.5 - $4 million. So PC don't help much any more. Hence bad (or let's say 'cheap') conversions and delays for the PC versions of anything. Shame really. But that's the world now.

condelirios
condelirios

I agree that they should sell it to PS3 owners, but not selling it to PC owners is REALLY stupid. The installed base of PCs is so much larger than any console... and you would think Microsoft would not want an exclusive that helps the XBOX at the expense of Windows....Seems really odd to me and bad business for Take 2. They need to forget the exclusives and sell across platforms. It has to make more money than the one time boost from an exclusive.

Hotwire246
Hotwire246

world69star69: "...I hate M$...take 2 would not be in the red right now if they sold the gta4 dlc paks to ps3 owners! again that's millions of lost sales!" Well thats just wrong. They probably made a load more than they would have if they released it on PS3 because of the money they got from Microsoft to make the deal to make it a 360 exclusive.

george999819
george999819

Cannot wait for episodic content #2. 360 exclusive!!!! :D

J0nGalt
J0nGalt

@Tonicmole I'm not being sarcastic when I say this: You need to be hired by the White house to write the Federal budget. You understand it better than anyone there, in congress or even most people in the public. To bad Take-two mimics them, what a F'ed up company, they always have this problem. Bad management?

ps3thabest
ps3thabest

Well, don't make an expensive game to real.

tonicmole
tonicmole

Well, it's just stupidity. Don't spend more then you are going to most likely make. ZINGER! I mean they maid less the same time last year then this year, yet spent more then they made. So, imagine last week you made $200, now you are setting up your budget for this week at $300. WHY!? You only made $200 last week, why would you bet on making more?

Ripper_TV
Ripper_TV

If anything, Take-Two should bathe in money, not having big losses.

MisterG333
MisterG333

god borderlands gives me a braingasm. YES, btw, that IS a word

brendanhunt1
brendanhunt1

ps3 owners dont forget your getting an exclusive franchise form rockstar north, i may not be gta but rockstar make the best games

parrot_of_adun
parrot_of_adun

@"world69star69"- "" Because you use terms like "xbot" and "M$". Not that I disagree about the DLC, everyone should get it, not just 360 users.

kellyjaye1
kellyjaye1

2nd exclusive 360 expansion for GTA4?? I knew they were set to get one exclusive back before the game even came out, never heard about 2 of them! Bring SOMETHING to the PS3!

world69star69
world69star69

whats up with all the xbots rating down any mention of the fact that they should release the gta4 dlc for ps3....sold so many copies for ps3 yet 6+ million potential buyers can't get the dlc, becuase of M$ and it's treachery...I hate M$...take 2 would not be in the red right now if they sold the gta4 dlc paks to ps3 owners! again that's millions of lost sales!

aslkyu
aslkyu

I hope Take-Two can catch a break somewhere, but they need to smarten up I think and not be at home when Mr Cock-up calls.

twashington9737
twashington9737

Well, at least, Bioshock 2 is a shoe-in sale from me and, maybe, just maybe, NBA2K10, unless Live 10 FINALLY swipes the crown, which they've already taken some steps toward doing. Just gotta get a better animation engine, though.

Paladin_King
Paladin_King

Bioshock 2 by October 31? Hm, sooner than i thought.

brendanhunt1
brendanhunt1

so in terms of console sales theres more ps3 owners that own gta than xbox

beekayjay
beekayjay

Getting tired that Sony is letting MS have all of these exclusive GTA4 expansions....not that I'd even get the biker expansion if I had a 360, but if this new expansion is about Chinatown, I'm gonna flip out.

alber
alber

[This message was deleted at the request of the original poster]

artson1966
artson1966

glad I sold my stock while it was up last year, I see no reason anytime soon to reinvest in this company.

Tybalt
Tybalt

@PdPstyle, @FarmFreshDX: This not about missing projections or budget forecasts. In the latest quarter, TTWO booked ~$257m in net revenue, against ~$201m cogs and ~$106m in operating expenses. Their net loss was about $50m. For realz. They spent $50m more than they took in.

brendanhunt1
brendanhunt1

maybe ea should buy you out, or let rockstar north be independent

Link1515
Link1515

can't wait to get my hands on the next GTA IV DLC. The Lost and Damned was/is amazing, well worth the $20 it costs. I'm only about 60% through the story on it, and have already put in 13 hours into it. Much longer than I had expected. Also, I can't wait to play Bioshock 2--the first one was my first 360 game, and I loved every bit of it.

Link1515
Link1515

[This message was deleted at the request of the original poster]

Phlakaton
Phlakaton

Gunslinger - one trick pony? They do well with Civilization, Sports, Bioshock and GTA... hardly a one trick pony of game styles to me.

humantree
humantree

Hell yes, Bioshock 2. As someone else said, it better not be rushed.

jsmoke03
jsmoke03

legal fees...yikes. i wonder what they meant by developement expenses. new tech or what?

darthogre
darthogre

People still listen to the patcher guy? How many times does a guy have to get it wrong before they stop listening to him?

jazilla
jazilla

Always project low figures. That way your shareholders will always feel good about how their stock in your company is doing. Yeah, you will have to deal with people feeling a bit weary about how the company is doing, but that's when you swoop in and buy up a bunch of stock and then turn a tidy profit in the end. Then who is kicking up his feet with a stogie and a cognac? You are! Enjoy the good times friend. Enjoy them for me.

PdPstyle
PdPstyle

FarmFreshDx nailed it on the head. Profit in is different for corporations than what you and I may think it is/ what it is for us. The loss of profit comes from not making the projected revenues, not ACTUALLY loosing money.

magusat999
magusat999

It's the pirates that did it! The pirates are sharing and selling so many illegal copies that it's taking Take-Two under! Darned dastardly pirate thieves! Or at least that's what they'll be moaning at the shareholder's meeting...

insanitycheck3
insanitycheck3

[This message was deleted at the request of the original poster]

FarmFreshDX
FarmFreshDX

The misleading thing about these articles is that "loss" does not mean the opposite of profit. Take-Two did not spend more than they made, they just made $50.4 Million less than they projected, so they have to change their budget.

xbox4life76
xbox4life76

I'm like many of you and don't understand how a company can make a solid game, sell it well and bring in tons of revenue yet still have a loss...somebody is not running the books well...such great games too.

Arashcrysis
Arashcrysis

GTA IV Your'e A Champion.History has not like you.

LosDaddie
LosDaddie

GTA IV was an amazing game. :)

deadliest88
deadliest88

Arghhh all Xbox exlusives :@ Money hungry greedy MF`s

Gamingcucumber
Gamingcucumber

I don't get it. They make plenty of games that win numerous awards and sell great, they have great and superb looking games in the pipeline. Yet they loose money? They are one of the few companys that actually deserve the cash!

Fed__X
Fed__X

Guess this means DLC for PS3 please?

shawn7324
shawn7324

Borderlands seems pretty good.

gunslingerNZ
gunslingerNZ

They're in trouble because they're a one trick pony. Hopefully the Houser bros new project can help bring them some diversity. Nobody wants to see Rockstar doing poorly. I don't think it makes sense to look at quarterly losses for a company like Take-Two though. Everyone knows GTA is their cash cow and funds a lot of their expenditure for the lean periods in between so I don't think this is really such a bad sign for them.

AOldDog
AOldDog

I think that if they wanna' improve theirs sales, and this applies to any product in this crisis years, they should come up with better products.

AOldDog
AOldDog

burn6 : No friend this means that they will release sooner that was anticipated and that ALWAYS means buggy/crappy games.

lil_luz_10
lil_luz_10

yeah no kidding how are they complaining about financial troubles i remember doing a current event senior year in high school about how GTA IV's PREORDERS and launch was one of the biggest launches ever and they made like 300+ million before the game even hit the shelves.