Take-Two Interactive (NASDAQ: TTWO) reported a substantial revenue increase for the first six months of fiscal 2023 ending 9/30/22. Revenue for the six-month period was up 54% to $3.9 billion. However, the company reported a loss of $361 million.
Analysis
In late May, Take-Two completed its $12 billion acquisition of Zynga and that is responsible for both the revenue gain and the loss. Like most AAA publishers, Take-Two has been quiet on the publishing front in 2022.
The only notable title for Take-Two in holiday 2022 is the strategy game Marvel’s Midnight Suns from Civilization and XCOM developer Firaxis. However, the company has a great deal of projects in the works as they try and expand beyond the Grand Theft Auto franchise.
Overall Take-Two is a tough company to evaluate. They seem to have a great deal of potential but have struggled to expand beyond Grand Theft Auto. However, as we have noted, the Zynga acquisition has questionable synergy and could prove a distraction.
