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.