Take-Two Interactive Posts Losses for Q2

Take Two Interactive
Take-Two has posted its second quarter financial results, showing a $47.3 million loss during Q2 of 2012 compared to a profit of $8 million during the same quarter of fiscal year 2011. Sales revenue was $107 million, less than half the $245 million that was earned during the same period last year.

Despite the loss, Strauss Zelnick, Chairman and CEO of Take-Two, still expects the company to be profitable by the end of of the fiscal year and expecting strong profits for next year.

“With our diverse lineup of industry-leading franchises and focus on operational excellence, we continue to expect fiscal 2012 to be another profitable year for Take-Two on a Non-GAAP basis and fiscal 2013 to be one of our best years ever, with Non-GAAP net income in excess of $2.00 per diluted share.”

Analysis: When your only major title this quarter is NBA 2012 compared to last year’s line-up of Sid Meier’s Civilization V, Mafia II, and Red Dead Redemption, you gotta expect a huge loss in sales revenue, and this was in line with Take-Two’s expectations. That being said, Take-Two attempted to shore up the quarter with DLC for L.A. Noire and Sid Meier’s Civilization V to good effect.

I’m also just as optimistic as Mr.Zelnick regarding Take-Two’s expectations for next year, with Bioshock Infinite, Spec Ops: The Line, The Darkness II, XCOM, Max Payne 3,and the possible release of Grand Theft Auto V in 2012.

Speaking of GTA V, I think it was very smart to release that trailer right before the losses were posted. It reassures the share holders about the great potential of the company’s future lineup.

Mohamed Al Saadoon

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