Compared to the previous year period, Take-Two Interactive (NASDAQ: TTWO) saw revenue grow 56% in its third fiscal quarter ending 12/31/22. Bookings for the quarter grew 60% over the previous year to $1.38 billion. However, the company also reported a net loss for the quarter of $153 million versus net income of $145 million in the third quarter ending 12/31/21.
Analysis
Making a year-over-year comparison for Take-Two results is difficult as the company is absorbing its $13 billion acquisition of Zynga. Grand Theft Auto Online, NBA 2K, and Red Dead Online continue to do well, but both console and PC declined year-over-year as the new mobile segment accounted for over 50% of revenue and bookings in the quarter ending 12/31/22.
DFC Intelligence has been skeptical of the synergies between mobile games and the type of AAA content that Take-Two has historically produced. Currently Take-Two Interactive is not in the DFC Intelligence Video Game Stock Portfolio because of those concerns.
Going forward Take-Two Interactive has an aggressive pipeline of products across what the company now categorizes as Immersive Core (24 titles), Independent (10), Mobile (38) Mid-Core (7), and New Iterations of Previously Released Titles (8 titles). In other words, Take-Two is trying to grow beyond being the Grand Theft Auto company. It will be interesting to see if the company can pull this off as they also try and absorb Zynga and find cost synergies between two very different companies that are now under one roof.
